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Time‐based Experience and International Expansion: The Case of an Emerging Economy
Author(s) -
Luo Yadong
Publication year - 1999
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/1467-6486.00147
Subject(s) - china , business , equity (law) , emerging markets , competitive advantage , position (finance) , industrial organization , resource (disambiguation) , asset (computer security) , marketing , political science , computer network , computer security , finance , computer science , law
Building on the organizational learning theory and international expansion process model, this paper examines the effect of time‐based experience on multidimensional performance including return on equity, sales growth, competitive position, and asset efficiency of foreign‐invested enterprises (FIEs) in an emerging economy (the People's Republic of China). The analysis, based on a recent survey of FIEs in China, demonstrates that time‐based experience has a significantly positive effect on overall and individual dimensions of performance of FIEs. The underlying link between time‐based experience and multidimensional performance is, however, moderated by the cultural distance between the host and home countries. Moreover, time‐based experience moderates the positive impact of resource contributions, market commitment, and strategic innovativeness on venture performance.