Contextualizing Experience Effects in International Business: A Study of Ownership Strategies

37 Pages Posted: 10 Sep 2007

See all articles by Peng-Yu Li

Peng-Yu Li

National Chengchi University (NCCU)

Klaus E. Meyer

China Europe International Business School (CEIBS); Copenhagen Business School - Center for East European Studies (CEES)

Date Written: September 2007

Abstract

Experienced firms act differently than newcomers, yet such differences vary with the context and with the type of experience. We thus investigate the effects of international experience on MNEs' ownership strategy across a range of developed and developing economies. We distinguish competence building and partner selection effects of experience, which vary between general international experience and country-specific experience, and across host contexts. This contextualization of the theoretical arguments suggests that the predicted effects hold in some host countries, but not in others.

In support of these arguments, our empirical study of 1787 Taiwanese overseas subsidiaries finds that general international experience facilitates wholly owned operations in developed economies in North East Asia and Europe, while country-specific experience facilitates joint ownership in China.

Keywords: experience effects, ownership, joint venture, subsidiaries, international business, Taiwan, China, context

JEL Classification: D21, F23, L29, L63, M21

Suggested Citation

Li, Peng-Yu and Meyer, Klaus E., Contextualizing Experience Effects in International Business: A Study of Ownership Strategies (September 2007). Available at SSRN: https://ssrn.com/abstract=1012958 or http://dx.doi.org/10.2139/ssrn.1012958

Peng-Yu Li

National Chengchi University (NCCU) ( email )

No. 64, Chih-Nan Road
Section 2
Wenshan, Taipei, 11623
Taiwan

Klaus E. Meyer (Contact Author)

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

HOME PAGE: http://www.ceibs.edu/faculty/facultylist/09/100132.shtml

Copenhagen Business School - Center for East European Studies (CEES) ( email )

Porcelanshaven 24
2000 Frederiksberg
Denmark

HOME PAGE: http://www.klausmeyer.co.uk

Register to save articles to
your library

Register

Paper statistics

Downloads
168
Abstract Views
1,692
rank
177,892
PlumX Metrics