686
Views
25
CrossRef citations to date
0
Altmetric
Articles

The ownership structure of foreign subsidiaries and the effect of institutional distance: a case study of Japanese firms

Pages 259-274 | Published online: 18 Aug 2011

References

  • Anderson , E. and Gatignon , H. 1986 . Modes of foreign entry: a transaction cost analysis and propositions . Journal of international business studies , 17 ( 3 ) : 1 – 26 .
  • Barkema , H.G. and Vermeulen , F. 1998 . International expansion through start-up or acquisition: a learning perspective . Academy of Management journal , 41 ( 1 ) : 7 – 26 .
  • Belderbos , R.A. and Heijltjes , M.G. 2005 . The determinants of expatriate staffing by Japanese multinationals in Asia: control, learning and vertical business groups . Journal of international business studies , 36 ( 3 ) : 341 – 354 .
  • Björkman , I. , Barner-Rasmussen , W. and Li , L. 2004 . Managing knowledge transfer in MNCs: the impact of headquarters control mechanisms . Journal of international business studies , 35 ( 5 ) : 443 – 455 .
  • Brouthers , K.D. 2002 . Institutional, cultural and transaction cost influences on entry mode choice and performance . Journal of international business studies , 33 ( 2 ) : 203 – 221 .
  • Brouthers , K.D. , Brouthers , L.E. and Werner , S. 2008 . Resource-based advantages in an international context . Journal of management , 34 ( 2 ) : 189 – 217 .
  • Chan , C.M. , Isobe , T. and Makino , S. 2008 . Which country matters? Institutional development and foreign affiliate performance . Strategic management journal , 29 ( 11 ) : 1179 – 1205 .
  • Chan , C.M. and Makino , S. 2007 . Legitimacy and multi-level institutional environments: implications for foreign subsidiary ownership structure . Journal of international business studies , 38 ( 4 ) : 621 – 638 .
  • Chang , S.J. 1995 . International expansion strategy of Japanese firms: capability building through sequential entry . Academy of Management journal , 38 ( 2 ) : 383 – 407 .
  • Chang , S.J. and Rosenzweig , P.M. 2001 . The choice of entry mode in sequential foreign direct investment . Strategic management journal , 22 ( 8 ) : 747 – 776 .
  • Cho , K.R. and Padmanabhan , P. 2005 . Revisiting the role of cultural distance in MNC's foreign ownership mode choice: the moderating effect of experience attributes . International business review , 14 ( 3 ) : 307 – 324 .
  • Cohen , W.M. and Levinthal , D.A. 1990 . Absorptive capacity: a new perspective on learning and innovation . Administrative science quarterly , 35 ( 1 ) : 128 – 152 .
  • Delios , A. and Beamish , P.W. 1999 . Ownership strategy of Japanese firms: transactional, institutional, and experience influences . Strategic management journal , 20 ( 10 ) : 915 – 933 .
  • Delios , A. and Beamish , P.W. 2001 . Survival and profitability: the roles of experience and intangible assets in foreign subsidiary performance . Academy of Management journal , 44 ( 5 ) : 1028 – 1038 .
  • Delios , A. and Henisz , W.J. 2000 . Japanese firms' investment strategies in emerging economies . Academy of Management journal , 43 ( 3 ) : 305 – 323 .
  • Demirbag , M. , Glaister , K.W. and Tatoglu , E. 2007 . Institutional and transaction cost influences on MNEs' ownership strategies of their affiliates: evidence from an emerging market . Journal of world business , 42 ( 4 ) : 418 – 434 .
  • Dikova , D. 2009 . Performance of foreign subsidiaries: does psychic distance matter? . International business review , 18 ( 1 ) : 38 – 49 .
  • Dow , D. and Larimo , J. 2009 . Challenging the conceptualization and measurement of distance and international experience in entry mode choice research . Journal of international marketing , 17 ( 2 ) : 74 – 98 .
  • Evans , J. , Mavondo , F.T. and Bridson , K. 2008 . Psychic distance: antecedents, retail strategy implications, and performance outcomes . Journal of international marketing , 16 ( 2 ) : 32 – 63 .
  • Feinberg , S.E. and Gupta , A.K. 2009 . MNC subsidiaries and country risk: internalization as a safeguard against weak external institutions . Academy of Management journal , 52 ( 2 ) : 381 – 399 .
  • Gaur , A.S. and Lu , J.W. 2007 . Ownership strategies and survival of foreign subsidiaries: impacts of institutional distance and experience . Journal of management , 33 ( 1 ) : 84 – 110 .
  • Gomes-Casseres , B. 1990 . Firm ownership preferences and host government restrictions: an integrated approach . Journal of international business studies , 21 ( 1 ) : 1 – 22 .
  • Gong , Y. 2003 . Subsidiary staffing in multinational enterprises: agency, resources, and performance . Academy of Management journal , 46 ( 6 ) : 728 – 739 .
  • Harzing , A.W. 2001 . Who's in charge? An empirical study of executive staffing practices in foreign subsidiaries . Human resource management , 40 ( 2 ) : 139 – 158 .
  • Henisz , W.J. 2004 . “ The institutional environment for international business ” . In What is international business? , Edited by: Buckley , P.J. 85 – 109 . New York : Palgrave Macmillan .
  • Hennart , J.F. 1988 . A transaction costs theory of equity joint ventures . Strategic management journal , 9 ( 4 ) : 361 – 374 .
  • Hennart , J.F. 1991 . The transaction costs theory of joint ventures: an empirical study of Japanese subsidiaries in the United States . Management science , 37 ( 4 ) : 483 – 497 .
  • Hofstede , G. 2001 . Culture's consequences: comparing values, behaviors, institutions, and organizations across nations , 2nd ed , Thousand Oaks, CA : Sage .
  • Hoskisson , R.E. 2000 . Strategy in emerging economies . Academy of Management journal , 43 ( 3 ) : 249 – 267 .
  • IMD, 2006. IMD world competitiveness yearbook 2006. Lausanne, Switzerland: International Institute for Management Development
  • Jensen , R. and Szulanski , G. 2004 . Stickiness and the adaptation of organizational practices in cross-border knowledge transfers . Journal of international business studies , 35 ( 6 ) : 508 – 523 .
  • Johanson , J. and Vahlne , J.E. 1977 . The internationalization process of the firm – a model of knowledge development and increasing foreign market commitments . Journal of international business studies , 8 ( 1 ) : 25 – 34 .
  • Kaufmann , D. , Kraay , A. and Mastruzzi , M. 2005 . Governance matters IV: governance indicators for 1996–2004 , World Bank policy research paper 3630
  • Khanna , T. and Palepu , K. 2000 . The future of business groups in emerging markets: long-run evidence from Chile . Academy of Management journal , 43 ( 3 ) : 268 – 285 .
  • Kogut , B. and Singh , H. 1988 . The effect of national culture on the choice of entry mode . Journal of international business studies , 19 ( 3 ) : 411 – 432 .
  • Kostova , T. 1999 . Transnational transfer of strategic organizational practices: a contextual perspective . Academy of Management review , 24 ( 2 ) : 308 – 324 .
  • Kostova , T. and Zaheer , S. 1999 . Organizational legitimacy under conditions of complexity: the case of the multinational enterprise . Academy of Management review , 24 ( 1 ) : 64 – 81 .
  • Lu , J.W. 2002 . Intra- and inter-organizational imitative behavior: institutional influences on Japanese firms' entry mode choice . Journal of international business studies , 33 ( 1 ) : 19 – 37 .
  • Mani , S. , Antia , K.D. and Rindfleisch , A. 2007 . Entry mode and equity level: a multilevel examination of foreign direct investment ownership structure . Strategic management journal , 28 ( 8 ) : 857 – 866 .
  • Meyer , K.E. 2001 . Institutions, transaction costs, and entry mode choice in Eastern Europe . Journal of international business studies , 32 ( 2 ) : 357 – 367 .
  • Meyer , K.E. 2009 . Institutions, resources, and entry strategies in emerging economies . Strategic management journal , 30 ( 1 ) : 61 – 80 .
  • Meyer , K.E. and Nguyen , H.V. 2005 . Foreign investment strategies and sub-national institutions in emerging markets: evidence from Vietnam . Journal of management studies , 42 ( 1 ) : 63 – 93 .
  • Nakamura , M. and Yeung , B. 1994 . On the determinants of foreign ownership shares: evidence from US firms' joint ventures in Japan . Managerial and decision economics , 15 ( 2 ) : 95 – 106 .
  • Nihon , Keizai Shimbun . Nikkei NEEDS database , Tokyo : Nihon Keizai Shimbun .
  • North , D.C. 1990 . Institutions, institutional change and economic performance , New York : Cambridge University Press .
  • O'Donnell , S.W. 2000 . Managing foreign subsidiaries: agents of headquarters, or an interdependent network? . Strategic management journal , 21 ( 5 ) : 525 – 548 .
  • Peng , M.W. 2003 . Institutional transitions and strategic choices . Academy of Management review , 28 ( 2 ) : 275 – 296 .
  • Slangen , A.H.L. and Hennart , J.F. 2008 . Do multinationals really prefer to enter culturally distant countries through greenfields rather than through acquisitions? The role of parent experience and subsidiary autonomy . Journal of international business studies , 39 ( 3 ) : 472 – 490 .
  • Slangen , A.H.L. and van Tulder , R.J.M. 2009 . Cultural distance, political risk, or governance quality? Towards a more accurate conceptualization and measurement of external uncertainty in foreign entry mode research . International business review , 18 ( 3 ) : 276 – 291 .
  • Taylor , C.R. , Zou , S. and Osland , G.E. 2000 . Foreign market entry strategies of Japanese MNCs . International marketing review , 17 ( 2 ) : 146 – 163 .
  • Keizai Shimposha , Toyo . 2008 . Kaigai shinshutsu kigyo soran [CD-ROM] , Tokyo : Toyo Keizai Shimposha .
  • Uhlenbruck , K. 2006 . The impact of corruption on entry strategy: evidence from telecommunication projects in emerging economies . Organization science , 17 ( 3 ) : 402 – 414 .
  • Wilkinson , T.J. 2008 . The diminishing effect of cultural distance on subsidiary control . Journal of international management , 14 ( 2 ) : 93 – 107 .
  • Williamson , O.E. 1985 . The economic institutions of capitalism: firms, markets, relational contracting , New York : Free Press .
  • World Economic Forum, 2006. The global competitiveness report 2006–2007. New York: Palgrave Macmillan
  • Xu , D. and Shenkar , O. 2002 . Institutional distance and the multinational enterprise . Academy of Management review , 27 ( 4 ) : 608 – 618 .
  • Yan , A. and Luo , Y. 2001 . International joint ventures: theory and practice , New York : M.E. Sharpe .
  • Yiu , D. and Makino , S. 2002 . The choice between joint venture and wholly owned subsidiary: an institutional perspective . Organization science , 13 ( 6 ) : 667 – 683 .
  • Zaheer , S. 1995 . Overcoming the liability of foreignness . Academy of Management journal , 38 ( 2 ) : 341 – 363 .
  • Zhao , H. , Luo , Y. and Suh , T. 2004 . Transaction cost determinants and ownership-based entry mode choice: a meta-analytical review . Journal of international business studies , 35 ( 6 ) : 524 – 544 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.