The interactive effect of time and host country location on Chinese MNCs' performance: An empirical investigation

Lin Yuan*, Nitin Pangarkar, Jie Wu

*Corresponding author for this work

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

We explore the performance implications of location choices Chinese multinational corporations (MNCs) make. Drawing on internalization and organizational learning theories, we find that developing country MNCs entering other developing countries experience a positive effect on their performance in the immediate term that, however, erodes over time because of the decay in their initial internalized advantages. Conversely, MNCs entering developed countries experience a negative effect on their immediate-term performance but a boost in performance over time because of the gradual realization of learning benefits. Our analyses of internationalization and performance of 207 Chinese-listed MNCs between 1992 and 2005 corroborate our key predictions.

Original languageEnglish
Pages (from-to)331-342
Number of pages12
JournalJournal of World Business
Volume51
Issue number2
Early online date17 Dec 2015
DOIs
Publication statusPublished - 1 Feb 2016

Keywords

  • Internalization
  • Internationalization
  • Location choice
  • Organizational learning

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