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

282 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
Publication statusPublished - 2000 Jun
Externally publishedYes

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Economics
Technology transfer
Availability
Resource commitment
Market performance
Foreign direct investment
International joint ventures
Emerging economies
Joint ventures
Entry timing
China
Survey data
Parental investment
Economic performance
Entry strategy
External factors
Internal factors

ASJC Scopus subject areas

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

Cite this

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