Timing of Entry and Foreign Subsidiary Survival

Abstract

We adopt a two-stage, contingency approach to analyze the relationship between timing of entry and subsidiary survival. We develop and test hypotheses concerning determinants of the timing of entry, and hypotheses about asset-based competitive advantage moderators of timing of entry's influence on subsidiary survival. Our results show that subsidiary survival was positively related to late entry, but the magnitude of this effect was dependent on the assets possessed by the investing firm.

Keywords: FDI, Performance, Japan, foreign investment, Timing of Entry