Resource commitment, entry timing, and market performance of foreign direct investments in emerging economies: The case of Japanese international joint ventures in China

Takehiko Isobe, Shige Makino, David B. Montgomery

Research output: Contribution to journalArticle

291 Citations (Scopus)

Abstract

This study examined whether early movers and technology leaders attained superior performance in emerging economic regions. We assessed the determinants and performance consequences of two key aspects of entry strategy, resource commitment to technology transfer and timing of entry, using survey data from over 220 Sino-Japanese joint ventures (JVs) in China. Both high commitment and early entry had positive impacts on the perceived economic performance of the JVs. Yet these relationships were found to be significantly contingent on several internal and external factors, such as the strategic importance of an investment, parental control of a JV, and the availability of supporting local infrastructure.

Original languageEnglish
Pages (from-to)468-484
Number of pages17
JournalAcademy of Management Journal
Volume43
Issue number3
DOIs
Publication statusPublished - 2000 Jun

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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