Ownership Strategies and Survival of Foreign Subsidiaries: Impacts of Institutional Distance and Experience

Publication Type

Journal Article

Publication Date

7-2010

Abstract

This article integrates institutional theory and organizational learning perspective and proposes a contingency framework on the relationship between ownership strategies and subsidiary performance. Using a sample of Japanese subsidiaries worldwide, the article finds important main effects of ownership, institutional distance, and host country experience on subsidiary survival. Furthermore, the effect of ownership is contingent on institutional distance and host country experience. In institutionally distant countries, subsidiaries have better survival chances if foreign parents have more ownership. Host country experience has a negative impact on subsidiary survival, but the effect is weaker if foreign parents have larger ownership positions in the subsidiaries.

Discipline

Management Sciences and Quantitative Methods

Research Areas

Strategy and Organisation

Publication

Journal of Management

Volume

33

Issue

1

First Page

84

Last Page

110

ISSN

0149-2063

Identifier

10.1177/0149206306295203

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