FOREIGN ENTRY AND SURVIVAL - EFFECTS OF STRATEGIC CHOICES ON PERFORMANCE IN INTERNATIONAL MARKETS

• 成果类型: Article
• 署名作者: LI, JT
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.4250160502
• 发表日期: 1995
• 页码: 333-351
• 关键词: INTERNATIONAL EXPANSION; entry strategy; experience; survival; foreign subsidiary

摘要

This paper investigates effective strategies that can reduce the risk of failure in international expansion by examining the entry and survival of foreign subsidiaries in the U.S. computer and pharmaceutical industries over the 1974-89 period. Using a hazard rate model, we examine the effects of (1) diversification strategies, (2) entry strategies, and (3) organizational learning and experience on the survival probabilities of foreign subsidiaries. The results show a higher exit rate for foreign acquisitions and joint ventures than for subsidiaries established through greenfield investments. The results also indicate a higher exit rate for subsidiaries that diversify than for those that stay in the parent firm's main product areas. Finally, the results show that firms benefit from learning and experience in foreign operations, which improves the chances of success for subsequent foreign investments. These findings shed light on the dynamic process of international expansion and the evolution of the multinational corporation.