The limits to the growth of multinational firms in a foreign market

Danchi Tan
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Danchi Tan: Department of International Trade, National Chengchi University, Taipei, Taiwan, Postal: Department of International Trade, National Chengchi University, Taipei, Taiwan

Managerial and Decision Economics, 2003, vol. 24, issue 8, 569-582

Abstract: Theories of growth for firms have suggested that slow managerial growth is a major constraint why firms cannot grow faster. This paper is built on such a view and explores the factors that may influence the growth rate of Japanese firms in a given US industry. It is found that Japanese firms that allocated more internal and international managerial resources (proxied by expatriates) to their US operations tended to achieve higher growth rates. Japanese firms that were geographically diversified and those that spread their international investment projects evenly over time also achieved higher growth rates. Copyright © 2003 John Wiley & Sons, Ltd.

Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:24:y:2003:i:8:p:569-582

DOI: 10.1002/mde.1129

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