Abstract
An analysis of 244 Japanese-owned manufacturing subsidiaries in Europe reveals no statistically significant differences in performance between wholly-owned greenfield, joint venture, and acquisition entry modes. This is an unexpected result since previous research, including a paper published by the present authors which used two earlier (1992 and 1994) data compilations from the same source, demonstrated that entry mode has an influence on performance. Rather than reject the transactions-cost reasoning on which the hypotheses are based, possible explanations are put forward for the failure to find a significant effect. These are: 1) limitations of the ordinal-scaled performance measure; 2) other effects on performance, most notably changing economic conditions; and 3) a survival effect manifested principally in the acquisition mode.
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© 1999 Springer Fachmedien Wiesbaden
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Beamish, P.W., Nitsch, D. (1999). A Longitudinal Analysis of Entry Mode and Performance of Japanese Investments in Europe. In: Engelhard, J., Oechsler, W.A. (eds) Internationales Management / International Management. Gabler Verlag, Wiesbaden. https://doi.org/10.1007/978-3-663-07840-1_8
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DOI: https://doi.org/10.1007/978-3-663-07840-1_8
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