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Learning breakdown in latecomer multinational enterprises

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  • Xiaowen Tian

    (Murdoch University)

Abstract

Integrating the linkage, leverage, and learning (LLL) model with institutional economics, this paper develops a moderated mediation framework to examine the relationship between internationalization and the performance of multinational enterprises from latecomer economies (latecomer MNEs). In the framework, whether a latecomer MNE may succeed in learning and knowledge-led profit gains from internationalization is contingent on the development of market-oriented institutions in the country in which it is based. Latecomer MNEs based in countries with a high level of the development of market-oriented institutions are likely to succeed in learning to obtain knowledge-led profit gains from internationalization. Latecomer MNEs based in countries with a low level of the development of market-oriented institutions are likely to experience a breakdown in learning, and a failure in knowledge-led profit gains from internationalization. This paper provides robust evidence on the relationship between internationalization and the performance of latecomer MNEs conditional on the development of market-oriented institutions in their home countries, and discusses strategic implications for latecomer MNE managers.

Suggested Citation

  • Xiaowen Tian, 2017. "Learning breakdown in latecomer multinational enterprises," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 823-850, December.
    • Handle: RePEc:kap:asiapa:v:34:y:2017:i:4:d:10.1007_s10490-016-9502-z
    DOI: 10.1007/s10490-016-9502-z
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    5. Surana, Ankit & Chavan, Meena & Kumar, Vikas & Chirico, Francesco, 2024. "The internationalization process: A contextual analysis of Indian ibusiness firms," International Business Review, Elsevier, vol. 33(4).
    6. Jane Lu & Xufei Ma & Lucy Taksa & Yue Wang, 2017. "From LLL to IOL3: Moving dragon multinationals research forward," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 757-768, December.

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