This article by Detlev Nitsch, Paul Beamish and Shige Makino provides an illuminating presentation of the characteristics and performance of 118 Japanese subsidiaries in Europe. The study is one of the few that contains performance data at the subsidiary level. Subsidiary performance is limited...

Outward FDI does not necessarily reduce domestic employment – it often boosts it. Evidence from Japanese MNEs show that they increase domestic employment in Japan when they conduct market-seeking, strategic asset-seeking, or efficiency-seeking FDI to expand domestic operations into foreign...

The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types--refinement capability, which involves the improvement of the existing asset portfolio, and reconfiguration capability, which...

Sociological-based information theory and economics-based competitive rivalry theory operate as the dominant theories of interorganizational mimetic behaviour. Recent work has sought to integrate the ideas in these theories, or determine which has greater explanatory power. In this study, we...

The purpose of this study is to investigate the relationships between firm resources and performance. We divide firm resources into two types: primary resources and support resources. Primary resources include technological assets and reconfiguration capabilities, which directly contribute to a...

Our study investigates the effect of Japanese horizontal keiretsu group membership on firm risk and return. Like prior studies, our results show that horizontal keiretsu membership has a negative effect on firm profitability. However, we find that horizontal keiretsu networks are likely to...

Transaction cost theory posits that culture plays a limited role in the choice between JV and WOS. In contrast, research suggests that firms' preferred level of ownership in their foreign subsidiaries is influenced primarily by cultural traits. This study provides additional evidence in this...

This study examines the relationship between ownership entry modes and performance. The ownership entry modes examined are the wholly owned modes of acquisition and new venture entry, and the non-wholly owned mode of joint venture entry. A theoretical relationship is developed for international...

Foreign firms in host country environments frequently face location-based disadvantages. This study proposes three means (channels) of overcoming local knowledge disadvantages. Based on a sample of 558 Japanese joint ventures (JVs) located in Southeast and East Asia, we find that partnering with...

The international joint venture (JV) literature has focused on two parent JVs formed between one foreign and one local firm. Yet, other types of JVs exist. This paper identifies four distinct forms of JVs based on the JV partners′ nationality and equity affiliation. These are: (i) JVs that are...