Back to Search
Start Over
The Interplay of Mahalanobis Distance and Firm Capabilities on MNC Subsidiary Exits from Host Countries.
- Source :
- Management International Review (MIR); Jun2017, Vol. 57 Issue 3, p379-409, 31p
- Publication Year :
- 2017
-
Abstract
- We examine how the cross-national Mahalanobis distance between home and host countries may affect a multinational corporation subsidiary's exit from its host country by applying a longitudinal Cox proportional hazard model analysis using data from Korean MNCs between 1990 and 2012. Our findings show that increasing cross-national distance is positively related to the likelihood of a subsidiary's exit from the host country for most cross-national distance dimensions, while increasing cross-national distance is negatively related to the likelihood of a subsidiary's exit from the host country for knowledge and global connectedness dimensions. However, the positive relationship between the seven dimensions of cross-national distance and subsidiary exit becomes weaker when the MNC has strong technological and experiential capabilities, while the negative relationship between two dimensions (i.e., knowledge and global connectedness) of cross-national distance and subsidiary exit becomes stronger. Our study contributes to the international business literature by examining the impact of diverse cross-national distance dimensions on subsidiary exit by showing the significance of firm capabilities in overcoming cross-national distance challenges, as well as by finding both a 'problem-focused view' and 'positive organizational perspective' in the results. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 09388249
- Volume :
- 57
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Management International Review (MIR)
- Publication Type :
- Academic Journal
- Accession number :
- 123386389
- Full Text :
- https://doi.org/10.1007/s11575-016-0287-6