1,016
Views
42
CrossRef citations to date
0
Altmetric
Articles

Distance and divestment of Korean MNC affiliates: the moderating role of entry mode and experience

&
Pages 174-196 | Received 23 Dec 2012, Accepted 22 May 2013, Published online: 12 Aug 2013

References

  • Amable, B.2003. The Diversity of Modern Capitalism. Oxford: Oxford University Press.
  • Ando, N.2012. “The Ownership Structure of Foreign Subsidiaries and the Effect of Institutional Distance: A Case Study of Japanese Firms.” Asia Pacific Business Review18 (2): 259–274.
  • Barkema, H. G., J. H. J.Bell, and J. M.Pennings. 1996. “Foreign Entry, Cultural Barriers, and Learning.” Strategic Management Journal17: 151–166.
  • Barkema, H. G., and F.Vermeulen. 1997. “What Differences in the Cultural Backgrounds of Partners are Detrimental for International Joint Ventures?” Journal of International Business Studies28: 845–864.
  • Belderbos, R., and J.Zou. 2009. “Real Options and Foreign Affiliate Divestments: A Portfolio Perspective.” Journal of International Business Studies40 (3): 600–620.
  • Benito, G. R. G.1997. “Why Are Foreign Subsidiaries Divested? A Conceptual Framework.” In The Nature of the International Firms, edited by I.Bjorkman, and M.Forsgren. Copenhagen, Denmark: Copenhagen Business School Press.
  • Berry, H., M.Guillen, and N.Zhou. 2010. “An Institutional Approach to Cross-National Distance.” Journal of International Business Studies41 (9): 1460–1480.
  • Beugelsdijk, S., P.McCann, and R.Mudambi. 2010. “Place, Space and Organization – Economic Geography and the Multinational Enterprise.” Journal of Economic Geography10 (4): 485–493.
  • Boddewyn, J. J.1976. International Divestment: A Survey of Corporate Experience. New York: Business International.
  • Boddewyn, J. J.1979b. “Divestment: Local vs. Foreign, and U.S. vs. European Approaches.” Management International Review19 (1): 21–27.
  • Boddewyn, J. J.1979a. “Foreign Divestment: Magnitude and Factors.” Journal of International Business Studies10 (1): 21–27.
  • Boddewyn, J. J.1983. “Foreign and Domestic Divestment and Investment Decisions: Like or Unlike.” Journal of International Business Studies14 (3): 23–35.
  • Boddewyn, J. J.1988. “Political Aspects of MNE Theory.” Journal of International Business Studies19 (3): 341–363.
  • Brainard, S. L.1997. “An Empirical Assessment of the Proximity-Concentration Trade-off between Multinational Sales and Trade.” American Economic Review87: 520–544.
  • Brouthers, K., and L.Brouthers. 2001. “Explaining the National Cultural Distance Paradox.” Journal of International Business Studies32 (1): 177–189.
  • Brouthers, K. D., and L. E.Brouthers. 2003. Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust. Journal of Management Studies40 (5): 1179–1204.
  • Buckley, P. J., and M. C.Casson. 1976. The Future of the Multinational Enterprise. London: Macmillan.
  • Busenitz, L. W., C.Gomez, and J. W.Spencer. 2000. “Country Institutional Profiles: Unlocking Entrepreneurial Phenomena.” Academy of Management Journal43 (5): 994–1003.
  • Carr, D. L., J. R.Markusen, and K. E.Maskus. 2001. “Estimating the Knowledge-Capital Model of the Multinational Enterprise.” American Economic Review91: 693–708.
  • Caves, R. E.1996. Multinational Enterprise and Economic Analysis. 2nd ed.Cambridge: Cambridge University Press.
  • Chang, S., and J.Hong. 2000. “Economic Performance of Group-Affiliated Companies in Korea: Intragroup Resource Sharing and Internal Business Transactions.” Academy of Management Journal43 (3): 429–448.
  • Chang, S. J., and J. H.Rhee. 2011. “Rapid FDI Expansion and Firm Performance.” Journal of International Business Studies42 (4): 979–994.
  • Cleves, M. A., W. W.Gould, and R. G.Gutierrez. 2004. An Introduction to Survival Analysis Using STATA. College Station, TX: STATA Press.
  • Delios, A., and W.Henisz. 2000. “Japanese Firms' Investment Strategies in Emerging Economies.” Academy of Management Journal43 (3): 305–323.
  • Demirgüç-Kunt, A., and V.Maksimovic. 2002. “Funding Growth in Bank-Based and Market-Based Financial Systems: Evidence from Firm-Level Data.” Journal of Financial Economics65 (3): 337–363.
  • Dhanaraj, C., and P. Beamish. 2009. “Institutional Environment and Subsidiary Survival.” Management International Review 49 (3): 291–312.
  • DiMaggio, P. J., and W.Powell. 1983. “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields.” American Sociological Review48: 147–160.
  • Dong, L., and K. W.Glaister. 2009. “Antecedents of Perceived National and Corporate Culture Differences: Evidence from Chinese International Strategic Alliances.” Asia Pacific Business Review15 (2): 217–241.
  • Dow, D., and A.Karunaratna. 2006. “Developing a Multidimensional Instrument to Measure Psychic Distance Stimuli.” Journal of International Business Studies37 (5): 578–602.
  • Dunning, J. 1988. “The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions.” Journal of International Business Studies 19 (1): 1–31.
  • Eriksson, K., J.Johanson, A.Majkgard, and D. D.Sharma. 1997. “Experimental Knowledge and Cost in the Internationalization Process.” Journal of International Business Studies28 (2): 337–360.
  • Friend, I., and I.Tokutsu. 1987. “The Cost of Capital to Corporations in Japan and the USA.” Journal of Banking and Finance87: 313–327.
  • Gatington, H., and E.Anderson. 1988. “The Multinational's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation.” Journal of Law, Economics, and Organization4: 305–336.
  • Ghemawat, P.2001. “Distance Still Matters.” Harvard Business Review79 (8): 137–147.
  • Globerman, S., and D.Shapiro. 2003. “Governance Infrastructure and US Foreign Direct Investment.” Journal of International Business Studies34 (1): 19–39.
  • Gomes-Casseres, B.1990. “Firm Ownership Preferences and Host Government Restrictions: An Integrated Approach.” Journal of International Business Studies21 (1): 1–22.
  • Gräb, J., and J.Priebe. 2009. “Low Malnutrition but High Mortality: Explaining the Paradox of the Lake Victoria Region.” European Society of Population EconomyJan: 1–47.
  • Ha˚kanson, L., and B.Ambos. 2010. “The Antecedents of Psychic Distance.” Journal of International Management16 (3): 195–210.
  • Hall, P., and D.Soskice. 2001. Varieties of Capitalism. Oxford: Oxford University Press.
  • Harzing, A.-W.2004. “The Role of Culture in Entry-Mode Studies: From Neglect to Myopia?” In Advances in International Management, edited by J. L. C.Cheng, and M. A.Hitt. vol. 15, 75–127. New York: Elsevier.
  • Helpman, E., M. J.Melitz, and S. R.Yeaple. 2004. “Export versus FDI with Heterogeneous Firms.” American Economic Review94: 300–316.
  • Henisz, W. J.2000a. “The Institutional Environment for Economic Growth.” Economics and Politics12 (1): 1–31.
  • Henisz, W. J.2000b. “The Institutional Environment for Multinational Investment.” Journal of Law, Economics and Organization16 (2): 334–364.
  • Henisz, W. J., and A.Delios. 2001. “Uncertainty, Limitation, and Plant Location: Japanese Multinational Corporations, 1990–1996.” Administrative Science Quarterly46 (3): 443–475.
  • Hennart, J. F.1991. “The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States.” Management Science37: 483–497.
  • Hennart, J., and J.Larimo. 1998. “The Impact of Culture on the Strategy of Multinational Enterprises: Does National Origin Affect Ownership Decisions?” Journal of International Business Studies29 (3): 515–538.
  • Hennart, J. F., and Y. R.Park. 1994. “Location, Governance, and Strategic Determinants of Japanese Manufacturing Investment in the United States.” Strategic Management Journal15 (6): 419–436.
  • Hennart, J. F., and S.Reddy. 1997. The Choice Between Mergers/Acquisitions and Joint Ventures: The Case of Japanese Investors in the United States. Strategic Management Journal18 (1): 1–12.
  • Hennart, J. F., D. J.Kim, and M.Zeng. 1998. “The Impact of Joint Venture Status on the Longevity of Japanese Stakes in U.S. Manufacturing Affiliates.” Organization Science9 (3): 382–395.
  • Hofstede, G.1980. Culture's Consequences. New York: Sage.
  • Hymer, S. H.1976. The International Operations of National Firms: A Study of Direct Foreign Investment. Cambridge, MA: MIT Press.
  • Jackson, G., and R.Deeg. 2008. “Comparing Capitalisms: Understanding Institutional Diversity and Its Implications for International Business.” Journal of International Business Studies39 (4): 540–561.
  • Johanson, J., and J.-E.Vahlne. 1977. “The Internationalization Process of the Firm – A Model of Knowledge Development and Increasing Foreign Market Commitments.” Journal of International Business Studies8 (1): 25–34.
  • Johanson, J., and F.Wiedersheim-Paul. 1975. “The Internationalization of the Firm: Four Swedish Cases.” Journal of Management Studies12 (3): 305–322.
  • Kennedy, P.2002. A Guide to Econometrics. Malden, MA: Blackwell.
  • Kester, W. C.1996. “American and Japanese Corporate Governance.” In National Diversity and Global Capitalism, edited by S.Berger, and R.Dore, 107–137. Ithaca, NY: Cornell University Press.
  • Khanna, T., K. G.Palepu, and J.Sinha. 2005. “Strategies That Fit Emerging Markets.” Harvard Business Review83 (6): 63–76.
  • Kim, C. W., and P.Hwang. 1992. “Global Strategy and Multinationals' Entry Mode Choice.” Journal of International Business Studies23 (First Quarter): 29–53.
  • Kirkman, B. L., K. B.Lowe, and C. B.Gibson. 2006. “A Quarter Century of ‘Culture's Consequences’: A Review of Empirical Research Incorporating Hofstede's Cultural Values Framework.” Journal of International Business Studies37 (3): 285–320.
  • Kobrin, S.1979. “Political Risk: A Review and Reconsideration.” Journal of International Business Studies10 (1): 67–80.
  • Kogut, B., and H.Singh. 1988. “The Effect of National Culture on the Choice of Entry Mode.” Journal of International Business Studies19 (3): 411–432.
  • Kostova, T.1997. “Country Institutional Profiles: Concept and Measurement.” Academy of Management Best Paper Proceedings180–189.
  • Kostova, T.1999. “Transnational Transfer of Strategic Organizational Practices: A Contextual Perspective.” Academy of Management Review24 (2): 308–324.
  • Kostova, T., and K.Roth. 2002. “Adoption of an Organizational Practice by Subsidiaries of Multinational Corporations: Institutional and Relational Effects.” Academy of Management Journal45 (1): 215–233.
  • Kostova, T., and S.Zaheer. 1999. “Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational Enterprise.” Academy of Management Review24 (1): 64–81.
  • La Porta, R., F.López-de-Silanes, A.Shleifer, and R. W.Vishny. 1998a. “Law and Finance.” Journal of Political Economy106 (6): 1113–1155.
  • La Porta, R., F.Lopez-de-Silanes, A.Shleifer, and R. W.Vishny. 1998b. “Legal Determinants of External Finance.” Journal of Political Economy106: 1113–1155.
  • Makino, S., P. W.Beamish, and N. B.Zhao. 2004. “The Characteristics and Performance of Japanese FDI in Less Developed and Developed Countries.” Journal of World Business39 (4): 377–392.
  • March, J. G. 1991. “Exploration and Exploitation in Organizational Learning.” Organization Science 2: 71– 87.
  • McCann, P.2011. “International Business and Economic Geography: Knowledge, Time and Transaction Costs.” Journal of Economic Geography11: 309–317.
  • McDermott, M. C.2010–2011. “Foreign Divestment: The Neglected Area of International Business.” International Studies of Management and Organization40: 37–53.
  • Meyer, J., and B. Rowan. 1977. “Institutionalized Organizations: Formal Structure as Myth and Ceremony.” American Journal of Sociology83: 340–363.
  • Morosini, P., S.Shane, and H.Singh. 1998. “National Cultural Distance and Cross-Border Acquisition Performance.” Journal of International Business Studies29: 137–158.
  • Padmanabhan, P.1993. “The Impact of European Divestment Announcements on Shareholder Wealth: Evidence from the U.K.” Journal of Multinational Financial Management2: 185–208.
  • Padmanabhan, P., and K. R.Cho. 1999. “Decision-Specific Experience in Foreign Ownership and Establishment Strategies: Evidence from Japanese Firms.” Journal of International Business Studies30: 25–44.
  • Pak, Y. S., and Y. R.Park. 2004. “Global Ownership Strategy of Japanese Multinational Enterprises: A Test of Internalization Theory.” Management International Review44 (1): 3–21.
  • Park, Y. R., J. Y.Lee, and S.Hong. 2011. “Effect of International Entry-Order Strategies on Foreign Subsidiary Exit: The Case of Korean Chaebols.” Management Decision49 (9): 1471–1488.
  • Park, Y. R., Y. S.Pak, and J. Y.Lee. 2006. “What They Learned from the Crash: A Comparison of Korean Firms' FDI before and after the 1997 Financial Crisis.” Management International Review46 (1): 109–130.
  • Rios-Morales, R., and L.Brennan. 2007. “Ireland's Foreign Direct Investment Competitive Advantage and Japanese Outward Foreign Direct Investment.” Asia Pacific Business Review13 (2): 201–231.
  • Scott, R.1995. Institutions and Organizations. Thousand Oaks, GA: Sage.
  • Seber, G. A. F.1984. Multivariate Observations. New York: Wiley.
  • Slangen, A. H. L., and S.Beugelsdijk. 2010. “The Impact of Institutional Hazard on Foreign Multinational Activity: A Contingency Perspective.” Journal of International Business Studies41: 980–995.
  • Slangen, A. H. L., and J. F.Hennart. 2008. “Do Multinationals Really Prefer to Enter Culturally Distance Countries through Greenfields Rather Than Through Acquisitions? The Role of Parent Experience and Subsidiary Autonomy.” Journal of International Business Studies39: 472–490.
  • Song, J., and J.Shin. 2008. “The Paradox of Technological Capabilities: A Study of Knowledge Sourcing from Host Countries of Overseas R&D Operations.” Journal of International Business Studies39: 291–303.
  • Szulanski, G.1996. “Exploring Internal Stickiness: Impediments to the Transfer of Best Practice within the Firm.” Strategic Management Journal17: 27–43.
  • Thomas, D., L.Eden, M.Hitt, and S.Miller. 2007. “Experience of Emerging Market Firms: The Role of Cognitive Bias in Developed Market Entry and Survival.” Management International Review47 (6): 845–867.
  • Tihanyi, L., D. A.Griffith, and C. J.Russel. 2005. “The Effect of Cultural Distance on Entry Mode Choice, International Diversification, and MNE Performance: A Meta-Analysis.” Journal of International Business Studies36: 270–283.
  • Tsang, E. W. K., and P. S. L.Yip. 2007. “Economic Distance and the Survival of Foreign Direct Investments.” Academy of Management Journal50 (5): 1156–1168.
  • Whitley, R.1992. Business Systems in East Asia: Firms, Markets, and Societies. London: Sage.
  • Zaheer, S.1995. “Overcoming the Liability of Foreignness.” Academy of Management Journal38 (2): 341–363.
  • Zaheer, S., and E.Mosakowski. 1997. “The Dynamics of the Liability of Foreignness: A Global Study of Survival in Financial Services.” Strategic Management Journal18 (6): 439–464.

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.