Financial performance and survival of multinational corporations in China

Pan, Yigang; Peter, S. K.

doi:10.1002/(sici)1097-0266(199904)20:4<359::aid-smj31>3.0.co;2-9

Cited by 200 publications

(135 citation statements)

References 40 publications

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“…This variable corresponds to the rate of sales abroad divided by the total sales within a specific period (Pan and Chi, 1999). In fact, according to Katsikeas, et.…”

Section: Export Intensitymentioning

confidence: 99%

Mutual Effects Between Innovation Commitment and Exports: Evidence from the Owner-Manager in Colombia

Martins

Gómez-Araujo

Vaillant

2015

Journal of Technology Management & Innovation

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Latin America and the Caribbean is recognized as a region of entrepreneurs, as evidenced by the high amount of ventures per capita; however, just a few number of companies export and most of them show a weak growth and little innovation. Using information from the GEM database -Colombia 2010 and 2011, this study investigates the mutual effects between the owner-manager's commitment to innovation and the export behavior of companies. Logistic and Ordinal regression models are used to test the proposed hypotheses in this study.The main findings of this study suggest that the owner-manager's commitment to innovation is an important booster for exports, as well as for increasing sales abroad. Furthermore, the results suggest that the export propensity, in turn, increases the likelihood of involvement of owner-managers to innovate in Colombia.

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“…This variable corresponds to the rate of sales abroad divided by the total sales within a specific period (Pan and Chi, 1999). In fact, according to Katsikeas, et.…”

Section: Export Intensitymentioning

confidence: 99%

Mutual Effects Between Innovation Commitment and Exports: Evidence from the Owner-Manager in Colombia

Martins

Gómez-Araujo

Vaillant

2015

Journal of Technology Management & Innovation

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“…These MNEs enjoy a higher level of downstream vertical integration in an attempt to avoid various transaction costs due to the under-developed market-supporting frameworks in developing countries on the one hand (Pan and Chi 1999), and to reap benefits from pent-up, indigenous demand that has long been stifled by government interventions in these markets on the other (Luo and Park 2001).…”

Section: Market Seeking Orientationmentioning

confidence: 99%

“…Market seeking subsidiaries monitor the market situation and 7 carefully apply product and market innovations developed by headquarters, and accordingly transfer mature products and technologies to the host (Luo and Park 2001).They often use market penetration and extend the strength of their traditional product-market bases. This strategy also requires a high level of local adaptation of MNE operations (Luo 2001;Pan and Chi 1999): the management team is often given more autonomy; the firm gives more emphasis to the local market, develops necessary business networks, and in the meantime capitalizes on its capabilities in R&D, technology, production and marketing. Market seeking allows MNEs to extend the life cycle of their primary products and to maximize returns on their technological skills when avoiding the market fluctuations outside the host country (Pan and Chi 1999).…”

Section: Market Seeking Orientationmentioning

confidence: 99%

“…This strategy also requires a high level of local adaptation of MNE operations (Luo 2001;Pan and Chi 1999): the management team is often given more autonomy; the firm gives more emphasis to the local market, develops necessary business networks, and in the meantime capitalizes on its capabilities in R&D, technology, production and marketing. Market seeking allows MNEs to extend the life cycle of their primary products and to maximize returns on their technological skills when avoiding the market fluctuations outside the host country (Pan and Chi 1999).…”

Section: Market Seeking Orientationmentioning

confidence: 99%

“…In the literature, the former is termed as market seeking, versus the latter as resource seeking (Luo 2003;Luo and Park 2001;Nachum and Zaheer 2005;Wadhwa and Sudhakara 2011); market seeking orientation is used to describe a foreign firm's strategic intention to sell locally as the share of domestic sale in total sales of the firm (Pan and Chi 1999;Song 2002). Market seeking is often the primary strategy of foreign direct investment (FDI) in less developed economies to grab local market opportunity and growth (Luo 2001;Luo and Park 2001).…”

Section: Introductionmentioning

confidence: 99%

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Market Seeking Orientation and Performance in China: The Impact of Institutional Environment, Subsidiary Ownership Structure and Experience

Zhang

Jin-meng

2014

Manag Int Rev

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(2015) 'Market seeking orientation and performance in China : the impact of institutional environment, subsidiary ownership structure and experience.', Management international review., 55 (3). pp. 389-419. Further information on publisher's website:http://dx.doi.org/10.1007/s11575-014-0227-2Publisher's copyright statement:The nal publication is available at Springer via http://dx.doi.org/10.1007/s11575-014-0227-2.Additional information: Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. Abstract: Many foreign firms tend to follow the market-seeking mandate in China. However this orientation alone does not guarantee superior performance. From the perspectives of strategic fit and institutional theory, this research seeks to reveal several conditions under which market-seeking MNEs can achieve superior performance in China. We identify three performance contributors to marketing seeking FDI: the host country's favorable formal institutions towards FDI, the subsidiaries' operational experience and absorptive capacity in the host country, and the ownership structure of the subsidiary. Using data of 5,080 foreign invested subsidiaries in 2003-2010, our findings support the hypotheses that market-seeking orientation becomes more profitable for foreign subsidiaries in China when (1) the host country provides a more favorable institutional framework towards FDI; (2) the subsidiary has a longer history of FDI operation in the host country that leads to stronger absorptive capacity; and (3) the subsidiary is organized in a wholly owned manner.

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The intersubsidiary competition in an MNE: evidence from the Greater China region

Fong

Weng

et al. 2007

Can J Adm Sci

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We examine subsidiary survival from an intersubsidiary competition perspective. Drawing from 87 Taiwanese subsidiaries of MNEs we examine the influences of strategic importance of a subsidiary, resource asymmetry, and characteristics of value activities on the survival rate of a subsidiary. Results show that these factors have differential effects on the survival rates of a firm's foreign subsidiaries. Specifically, strategic importance and gains in intangible resources enhance a subsidiary's survival rate, whereas local responsiveness, gains in physical resources, and similarity and mobility of value‐added activities decrease its survival rate. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.

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Financial performance and survival of multinational corporations in China

Cited by 200 publications

References 40 publications

Mutual Effects Between Innovation Commitment and Exports: Evidence from the Owner-Manager in Colombia

Mutual Effects Between Innovation Commitment and Exports: Evidence from the Owner-Manager in Colombia

Market Seeking Orientation and Performance in China: The Impact of Institutional Environment, Subsidiary Ownership Structure and Experience

The intersubsidiary competition in an MNE: evidence from the Greater China region

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