Implications of firm experiential knowledge and sequential FDI on performance of Japanese subsidiaries in Brazil

• Published in: Review of quantitative finance and accounting Vol. 33; no. 1; pp. 37 - 58
• Main Authors: Ogasavara, Mário Henrique, Hoshino, Yasuo
• Format: Journal Article
• Language: English
• Published: Boston Springer US 01.07.2009; Springer Nature B.V
• Subjects: Accounting/Auditing; Brazil; Corporate Finance; Developing countries; Econometrics; Economics and Finance; Employees; Experiential learning; Finance; Foreign direct investment; Foreign investment; Foreign subsidiaries; Globalization; Host country; Investigations; Investment; Japan; Knowledge; LDCs; Literature reviews; Market; Market entry; Multinational corporations; Operations Research/Decision Theory; Original Research; Strategic management; Studies; Subsidiaries; Subsidiary; Brazil; General knowledge; Sequential investment; Market-specific knowledge; F23; Subsidiary performance; Japanese FDI

A foreign firm investing in a culturally different market usually faces a certain level of uncertainty. This study proposes that as a multinational company accumulates experiential knowledge, it develops more capabilities and know-how and consequently reflects on subsidiary performance. Based on a s...