MNC SUBSIDIARIES AND COUNTRY RISK: INTERNALIZATION AS A SAFEGUARD AGAINST WEAK EXTERNAL INSTITUTIONS

• 成果类型: Article
• 署名作者: Feinberg, Susan E.; Gupta, Anil K.
• 署名单位: Rutgers University System; Rutgers University New Brunswick; University System of Maryland; University of Maryland College Park
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/AMJ.2009.37315470
• 发表日期: 2009
• 页码: 381-399
• 关键词: intellectual property-rights; JAPANESE FIRMS; MULTINATIONAL-CORPORATIONS; ENTRY STRATEGIES; FOREIGN ENTRY; experience; cost; performance; CORRUPTION; GOVERNMENT

摘要

Country risk and foreign direct investment (FDI) are negatively associated, yet considerations such as rapid economic growth and lower factor costs are driving multinational corporations (MNCs) to significantly increase FDI into high-risk countries. How do MNCs deal with country risk on an ongoing basis after establishing majority or wholly owned operations? Analyses of 1983-96 data on a large sample of subsidiaries support our prediction that, under uncertainty, MNCs increase the extent of their within-firm sales. Trade internalization as a response to country risk is weaker for MNCs having greater experience deploying political strategies.