Causal attribution for peer performance and international joint venture divestment

Hui, Kent; Hult, G. Tomas M.; Ketchen, David J.

doi:10.1016/j.intman.2020.100754

Cited by 9 publications

(1 citation statement)

References 71 publications

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“…Toyo Keizai Inc. developed Japanese Overseas Investments by conducting mail and telephone surveys with major listed and unlisted Japanese parent firms and collecting their archival data. Japanese Overseas Investments document the information of all foreign subsidiaries of those parent firms in detail (Henisz & Delios, 2001), and the data have been employed by a large number of international business studies (e.g., Chan & Makino, 2007;Henisz & Delios, 2001;Hui, Hult, & Ketchen, 2020;Makino & Beamish, 1998). While Japanese Overseas Investments provide the data regarding the foreign activities of Japanese MNCs, SPEEDA, which is developed by Uzabase Inc., provides the data for other variables.…”

Section: Datamentioning

confidence: 99%

Foreign investment or divestment as a near-term solution to performance shortfalls? The moderating role of vicarious learning

et al. 2021

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Most studies on problemistic search do not pay sufficient attention to how belowaspiration organizations decide what types of strategic actions to use to cope with performance shortfalls. In this study, we examine the preferences of multinational corporations (MNCs) for selecting foreign investment or divestment as a near-term solution to performance shortfalls. We first argue that foreign divestment is generally a more preferred performance solution. Drawing on the literature on vicarious learning, we further argue that MNCs are more likely to engage in foreign investment or foreign divestment to combat large performance shortfalls if peers recently and actively undertook the same type of strategic action. Moreover, they are less likely to undertake the other type of strategic action simultaneously because they adopt the satisficing principle and time constraints deter them from implementing multiple types of strategic action substantially. The analysis of the data about Japanese manufacturing MNCs reveals that vicarious learning influences MNCs' selection preferences in certain conditions, thereby extending the literature on problemistic search.

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