Timing of investment and international expansion performance in China

Research output: Contribution to journalArticle

104 Citations (Scopus)

Abstract

This study examines the multivariate and univariate performance effects of timing of FDI in an emerging economy at the business unit level. A longitudinal analysis of industry-wide, firm-specific data on FDI timing and foreign venture performance in China reveals that timing has a significant influence on overall, as well as on individual, aspects of venture performance. It is observed that early entrants outperform late movers in terms of local market expansion and asset turnover, whereas late movers are superior to early entrants with regard to risk reduction and accounting return during the initial period of international expansion. Factor analysis confirms that the importance of timing in affecting FDI decisions is as significant as that of internalization, ownership, or location factors.

Original languageEnglish (US)
Pages (from-to)391-408
Number of pages18
JournalJournal of International Business Studies
Volume29
Issue number2
StatePublished - Jun 1998
Externally publishedYes

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Factor analysis
Industry
China
International expansion
Venture
Assets
Ownership
Longitudinal analysis
Emerging economies
Turnover
Local markets
Internalization
Risk reduction
Market expansion
Location factors

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management
  • Economics and Econometrics

Cite this

Timing of investment and international expansion performance in China. / Luo, Yadong.

In: Journal of International Business Studies, Vol. 29, No. 2, 06.1998, p. 391-408.

Research output: Contribution to journalArticle

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