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Author:Gao, G.Y. (et al.)
Title:Performance of multinational firms' subsidiaries: Influences of cumulative experience
Journal:Management International Review
2008 : VOL. 48:6, p. 749-768
Index terms:multinational companies
company performance
subsidiary companies
USA
China
Language:eng
Abstract:This study examines the impact of cumulative experience arising from a series of sequential entries on the performance of foreign subsidiaries (henceforth as: frg-subs.) of multinational firms (MNCs). MNCs are proposed to acquire different types of experience (here as: exp.) at the firm level, incl. general entry exp., entry specific exp., and exporting exp. The effect of exp. on performance at the subsidiary level is also explored. Based on a dataset of 245 subsidiaries of 81 large U.S. firms in China, it is found that firms' entry specific exp., exporting exp., and subsidiary level exp. exhibit significant effects on the return on sales of frg-subs. etc.
SCIMA record nr: 268960
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