Resource Commitment, Entry Timing, and Market Performance of Foreign Direct Investments in Emerging Economies: The Case of Japanese International Joint Ventures in China.

Research on Competitive Dynamics: Recent Accomplishments and Future Challenges

“…Ketchen, Jr. et al / Journal of Management 2004 30(6) The effects of national context on first-mover advantages also have been examined. Contrary to the argument that emerging economies' high uncertainty levels discourage firms to enter markets early, two studies found that first-mover advantages may exist in such contexts (Isobe et al, 2000;Pan & Chi, 1999). Meanwhile, Song et al (1999) found that Western managers perceive the cost advantages of early moves to be stronger than do their AsianPacific counterparts.…”

Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?

“…According to Wernerfelt (1984), resources can be tangible or intangible and include everything that could be thought of as a strength of a given firm and which allow the MNE to appropriate rent by undertaking FDI (Hymer, 1960;1976). However, the extant literature suggests that firms originating from emerging economies may typically lack the FSAs required to succeed in foreign markets (Child & Rodrigues, 2005;Gammeltoft, Barnard, & Madhok, 2010;Isobe, Makino, & Montgomery, 2000;Mathews, 2006;Miller, Thomas, Eden, & Hitt, 2009). This deficiency is attributed to the country of origin effect (Wang, Clegg, & Kafouros, 2009) because emerging economies are typically characterised by weak human and entrepreneurial resources (Khanna & Palepu, 2000;Meyer, Estrin, Bhaumik, & Peng, 2009;Peng, 2003), inferior technological resources (Dunning, Kim, & Park, 2008), and less effective marketing resources (Duysters et al, 2009).…”

“…Many other studies (for example, Anand & Delios, 2002;Child & Rodrigues, 2005;Isobe et al, 2000;Mathews, 2006) argue that in order to compensate for deficiencies in resources required for building competitiveness in foreign markets, the EMNE seeks strategic assets. "An acquisition can be seen as the purchase of a bundle of resources in a highly imperfect market", through which the acquiring firm ceteris paribus can boost its growth (Wernerfelt, 1984, p. 172).…”

Managing FDI technology spillovers: A challenge to TNCs in emerging markets

“…When TNCs invest directly in an overseas market, they want to make full use of their technology to gain cost and sales advantages abroad, but do not want local firms to gain quick access to their technology lest they may lose competitive leadership to local competitors (Anderson and Gatigno, 1986;and Isobe, Makino and Montgomery, 2000). They need, therefore, to think about how to exploit as well as protect their technology in the overseas market they enter.…”