Strategies of Post-entry Foreign Expansion: Speed-up or Slow-down?

Bau-Jung Chang
August 2012
International Business Research;Aug2012, Vol. 5 Issue 8, p123
Academic Journal
This study explores the antecedents of the speed of post-entry foreign expansion in a host country. Employing competitive dynamics and organizational learning theories, the study examines the effect of competition, country-specific experience, and general international business experience on the time span between two consecutive entries made by a focal firm in a host country. The study analyses these factors in a dynamic context using a sample of 94 Taiwanese manufacturers in electronic industry with 190 entries between 1991 and 2004. The results show a firm makes faster post-entry expansion when a large number of firms in the same industry sector invest in that host country as a result of competition. However, cumulative host-country and general international business experience result in slower subsequent reinvestment. The findings not only contribute to the literature on competition, organizational learning, and international business, but also enrich our understanding on the evolutionary path of international expansion.


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