The effect of own-firm and other-firm experience on foreign direct investment survival in the United States, 1987-1992
Article Abstract:
A study was conducted to ascertain the impact of firms' own experience in a host country and other foreign entrants' experience in the target industry on the success of foreign direct investments. The sample used for the study includes 354 manufacturing-sector investments made by 311 foreign firms in the US. Of these, 237 were acquisitions or mergers and 117 were for new facilities. Findings revealed that prior experience of foreign entrants can have a positive impact on the survival of foreign direct investment although only certain firms are rewarded by the experience of earlier foreign entrants. Firms with current US operations in industries other than the target sector were found to have a greater chance of survival when the target industry has a greater level of foreign participation. Firms without current US operations and those with operations in the industry in which they invested did not have a significant survival rate.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1997
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Getting there in a global in a global industry: impacts of performance of changing international presence
Article Abstract:
A study was conducted to examine the risks that accompany international expansion. Specifically, the study investigated the effects of globalization on the market share and continued viability of US medical diagnostic imaging equipment manufacturers after they had established their presence in the international markets. Research findings indicated that becoming an international player is a highly complicated process and that it is highly probable that many of the businesses that intend to go global will not succeed. Results further suggested that success in the international markets is attributable to a mixture of good luck, the characteristics of the organization and the skills of its executives. Four case studies also suggested that successful global companies are those that are always prepared, have a focused management, and effectively use their previous experiences in the international arena.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
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Which firms expand to the Middle East: the experience of U.S. multinationals
Article Abstract:
The characteristics of US multinational companies doing business in the Middle East are examined. These firms are compared with US multinationals absent from the region to test the hypotheses that those firms with Middle Eastern operations will have greater levels of intangible assets, will have greater sales, will generate a larger proportion of their sales overseas, and will be more profitable. The study involves a sample of 36 US firms operating in Israel, Egypt, Iran, Lebanon, Saudi Arabia, Syria and Turkey, and 120 US multinationals not operating in the region. The findings offer a profile of American companies present in the Middle East. Compared to other multinationals, they are larger, are more profitable, are more technologically inclined and derive more sales from foreign sources.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1997
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