When do MNCs fail to learn from prior failure experience?

Abstract

Do multinational corporations (MNCs) learn from their prior failures in international joint ventures (IJVs)? When does decision makers’ cognitive inability hinder MNCs from learning through their prior failure experiences? In the context of IJV survival in subsequent IJV entries, this study compares predictions made from two distinct theoretical perspectives, both of which belong to the behavioural school in strategy literature. According to the performance feedback perspective, MNCs may effectively learn from their prior failure experiences gained in familiar decision‐making contexts. On the other hand, according to the cognitive bias perspective, MNCs may not be able to effectively learn from their prior failure experiences if they inaccurately interpret the causes of their prior failures. The results provide partial support for the notion that MNC decision makers may not be able to effectively learn from their prior failures because of their cognitive biases. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.

Canadian Journal of Administrative Sciences: A Retrospective Review Using Bibliometric Analysis

“…The most cited articles in this cluster focus on the need for a global mindset for successful internationalization (276 citations) (Nummela et al., 2004), the internationalization of small and medium enterprises (191 citations) (Etemad, 2004), and the export growth and internationalization of small firms (156 citations) (Andersson et al., 2004). Other notable topics covered by this cluster include ambidexterity (Han & Celly, 2008), cultural, geographical, and psychic distance (Bhowmick, 2019; Malhotra, 2012), ethnocentrism (Dana, 1997), firm‐specific advantages and location‐based assets (Tseng, 2007), foreign direct investment (Cheng, 2006), international advertising (Laroche et al., 1999), international business failure (Hong, 2016), international business models (Paul & Sánchez‐Morcilio, 2019), international franchising (Welsh & Raven, 2011), international joint venture (Merchant, 2004), international performance (Kuivalainen et al., 2004), internationalization of internet‐enabled entrepreneurial firms (Loane et al., 2004), negotiation (Lituchy, 1997), political climate (Agarwal & Feils, 2007), and liability of foreignness (Joardar & Wu, 2011), among others.…”