Political Hazards, Experience and Sequential Entry Strategies: The International Expansion of Japanese Firms, 1980-1998

40 Pages Posted: 1 Apr 2002

See all articles by Andrew Delios

Andrew Delios

National University of Singapore (NUS) - Department of Business Policy

Witold J. Henisz

University of Pennsylvania - Management Department

Abstract

We extend the stages model of internationalization to incorporate a sophisticated consideration of temporal and cross-national variation in the credibility of the policy environment. Using a sample of 6,570 international expansions of 665 Japanese manufacturing firms, we build on the concepts of uncertainty and experiential learning, to show that firms that had gathered relevant types of international experience were less sensitive to uncertain policy environments. We further highlight an important change in within-country expansion in which firms move to a manufacturing to distribution sequence in countries characterized by uncertain policy environments.

Keywords: FDI, Political risk, Japan, International

Suggested Citation

Delios, Andrew and Henisz, Witold Jerzy, Political Hazards, Experience and Sequential Entry Strategies: The International Expansion of Japanese Firms, 1980-1998. Available at SSRN: https://ssrn.com/abstract=305339 or http://dx.doi.org/10.2139/ssrn.305339

Andrew Delios (Contact Author)

National University of Singapore (NUS) - Department of Business Policy ( email )

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Witold Jerzy Henisz

University of Pennsylvania - Management Department ( email )

The Wharton School
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United States
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HOME PAGE: http://www-management.wharton.upenn.edu/henisz/

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