The pace of MNEs' sequential entries: Cumulative entry experience and the dynamic process

• Published in: Journal of international business studies Vol. 41; no. 9; pp. 1572 - 1580
• Main Authors: Gao, Gerald Yong, Pan, Yigang
• Format: Journal Article
• Language: English
• Published: London Palgrave Macmillan 01.12.2010; Palgrave Macmillan UK
• Series: Journal of International Business Studies
• Subjects: 1979-2002; Amerikanisch; Business and Management; Business management; Business strategies; Business Strategy/Leadership; Business structures; China; Corporate strategies; Economic dynamics; Equity; Foreign direct investments; Foreign markets; Globalization; Hypotheses; Impact analysis; International Business; Joint ventures; Knowledge; Learning; Learning experiences; Learning styles; Lernende Organisation; Management; Market entry; Marketing; Markteintritt; Multinational corporations; Multinational enterprises; Multinationales Unternehmen; Organization; Research Note; RESEARCH NOTES; rnote; Studies; Subsidiaries; Wholly owned subsidiaries; United States > US; China; pace of sequential entries; learning; cumulative entry experience; mode switch
• ISSN: 0047-2506; 1478-6990
• DOI: 10.1057/jibs.2010.15

This study examines the pace with which multinational enterprises undertake sequential entries in a foreign market. We focus on learning effects from cumulative entry experience of different modes within a host market. Moreover, we investigate the dynamic process of entry mode switch, and how cumulative entry experience reduces the expansion constraint. Using a dataset of sequential entries by US firms in China during 1979-2002, we find that the impact of cumulative entry experience on the pace of sequential entries varies across different modes. Further, firms with more cumulative entry experience can cope with the constraint of entry mode switch.