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Experience, imitation, and the sequence of foreign entry: wholly owned and joint-venture manufacturing by South Korean firms and business groups in China, 1987–1995

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  • Mauro F Guillén

    ([1] The Wharton School & Department of Sociology, University of Pennsylvania, Philadelphia, PA, USA [2] Instituto de Empresa, Madrid, Spain)

Abstract

The evolution of foreign entry in the form of joint ventures and wholly owned manufacturing operations is examined as a staged process shaped by experience and imitation dynamics at the firm, group, and industry levels of analysis. The expansion of South Korean firms into China between 1987 and 1995 lends support to the staged view of foreign entry. Over time, technology-intensive firms are more likely to abandon joint-venture entry modes, owing to contractual hazards. Firms in the same business group are found to imitate each other's choice of joint ventures and wholly owned plants. Firms in the same industry mimic each other's choice of wholly owned plants, though not of joint ventures. Journal of International Business Studies (2003) 34, 185–198. doi:10.1057/palgrave.jibs.8400016

Suggested Citation

  • Mauro F Guillén, 2003. "Experience, imitation, and the sequence of foreign entry: wholly owned and joint-venture manufacturing by South Korean firms and business groups in China, 1987–1995," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(2), pages 185-198, March.
    • Handle: RePEc:pal:jintbs:v:34:y:2003:i:2:p:185-198
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    Citations

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    Cited by:

    1. Glen Dowell & Brad Killaly, 2009. "Effect of Resource Variation and Firm Experience on Market Entry Decisions: Evidence from U.S. Telecommunication Firms' International Expansion Decisions," Organization Science, INFORMS, vol. 20(1), pages 69-84, February.
    2. Alcantara, Lailani Laynesa & Mitsuhashi, Hitoshi, 2012. "Make-or-Break Decisions in Choosing Foreign Direct Investment Locations," Journal of International Management, Elsevier, vol. 18(4), pages 335-351.
    3. Elango, B., 2009. "Minimizing effects of 'liability of foreignness': Response strategies of foreign firms in the United States," Journal of World Business, Elsevier, vol. 44(1), pages 51-62, January.
    4. Yeheskel, Orly & Newburry, William & Zeira, Yoram, 2004. "Significant differences in the pre- and post-incorporation stages of equity international joint ventures (IJVs) and international acquisitions (IAs), and their impacts on effectiveness," International Business Review, Elsevier, vol. 13(5), pages 613-636, October.

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