Survival and Profitability: The Roles of Experience and Intangible Assets in Foreign Subsidiary Performance

Posted: 2 May 2002

See all articles by Andrew Delios

Andrew Delios

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

Paul W. Beamish

University of Western Ontario - Asian Management Institute

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Abstract

This study integrates research on the financial performance of multinational firms with research on foreign subsidiary survival. We examined the influences a firm's intangible assets and its experience have on foreign subsidiary survival and profitability using a sample of 3,080 subsidiaries of 641 Japanese firms. The results show survival and profitability have different antecedents. Host country experience has a direct effect on survival but a contingent relationship with profitability. The entry mode moderated the nature of these relationships.

Keywords: FDI, Political risk, Japan, International

Suggested Citation

Delios, Andrew and Beamish, Paul W., Survival and Profitability: The Roles of Experience and Intangible Assets in Foreign Subsidiary Performance. Available at SSRN: https://ssrn.com/abstract=310234

Andrew Delios (Contact Author)

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

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Paul W. Beamish

University of Western Ontario - Asian Management Institute ( email )

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