| Revista: | BAR - Brazilian Administration Review |
| Base de datos: | |
| Número de sistema: | 000552841 |
| ISSN: | 1807-7692 |
| Autores: | Ogasavara, Mário Henrique1 |
| Instituciones: | 1Universidade de Fortaleza, Programa de Pós-Graduação em Administração de Empresas, Fortaleza, Ceara. Brasil |
| Año: | 2010 |
| Periodo: | Ene-Mar |
| Volumen: | 7 |
| Número: | 1 |
| Paginación: | 59-78 |
| País: | Brasil |
| Idioma: | Inglés |
| Tipo de documento: | Artículo |
| Resumen en inglés | This study attempts to empirically investigate how firms' experiential knowledge and the decision to invest sequentially in the host country are associated with the performance of their overseas subsidiaries. This research advances prior studies by adopting an objective performance measure based on the profitability ratio at the subsidiary level. Using a random-effect model of GLS regression applied to a panel data of Japanese firms established in Brazil, the results provide theoretical and practical implications showing that experiential knowledge is positively associated with subsidiary profitability. Local experiential knowledge can be acquired by managing subsidiaries for a long time in the host country, but also by increasing the number of investments in the local market. In practical terms, the subsidiary profitability ratio becomes higher when the parent firms have established more than five investments in the host country, although further investigation is needed to examine the direction of this relationship. Moreover, there is a significant association between subsidiary performance and the parent firms' experience in culturally similar markets to Brazil. The benefit of learning from international markets suggests that operating in countries with a similar culture transforms their experience into a competitive advantage. |
| Disciplinas: | Administración y contaduría |
| Palabras clave: | Administración de instituciones |
| Keyword: | Experiential knowledge, Subsequent FDI, Performance, Profitability, Management of institutions |
| Texto completo: | Texto completo (Ver HTML) Texto completo (Ver PDF) |
