ESTABLISHMENT, SURVIVAL, SALES GROWTH AND ENTRY STRATEGIES OF JAPANESE MNCs SUBSIDIARIES IN INDIA

Mehdi Rasouli Ghahroudi () and Yasuo Hoshino ()
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Mehdi Rasouli Ghahroudi: Graduate School of Systems and Information Engineering, University of Tsukuba, 1-1-1 Tennodai, Tsukuba-Shi, Ibaraki-Ken, 305-8573, Japan
Yasuo Hoshino: Graduate School of Accounting, Aichi University, 2-10-31 Tsutsui, Nagoya-Shi, 461-8641, Japan;

Journal of Developmental Entrepreneurship (JDE), 2007, vol. 12, issue 04, 433-447

Abstract: This empirical study explores first the relationship between operating years and entry strategies based on wholly-owned and joint venture companies. Second, we examine the effects of equity ownership, size, entry strategy and subsidiary age on the sales growth ratio and the subsidiary's survival. Our findings show that in recent periods, the multi-national companies (MNCs) prefer to acquire high levels of equity ownership, including full ownership subsidiaries, especially when the subsidiary is in the manufacturing industry. Our results imply that capital, the age of the venture, the number of employees and full equity ownership affect survival. Finally, we find that subsidiaries with a small number of employees are likely to have a superior sales growth ratio and are more likely to survive.

Keywords: Survival; entry strategy; sales growth; MNCs; subsidiary age; equity ownership (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (4)

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DOI: 10.1142/S1084946707000745

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