Internalization advantage and subsidiary performance: The role of business group affiliation and host country characteristics

• 成果类型: Article
• 署名作者: Gaur, Ajai S.; Pattnaik, Chinmay; Singh, Deeksha; Lee, Jeoung Yul
• 署名单位: Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; University of Sydney; Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden; Chongqing Technology & Business University; Hongik University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00236-6
• 发表日期: 2019
• 页码: 1253-1282
• 关键词: internalization advantages; MNCs; business groups; subsidiary survival; korea

摘要

We extend internalization theory by examining the contingencies associated with market internalization and its impact on foreign subsidiary survival. Based on a sample of 6170 subsidiary-year observations in 63 countries belonging to 292 MNCs from Korea during 1995-2013, we find that greater product and labor market internalization have weaker impacts on the survival of subsidiaries operating in countries with more developed institutional environments but stronger for subsidiaries of MNCs affiliated with business groups. The impact of business group affiliation is further dependent on host country institutional development, and the diversification and size of the business group.