The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil
Autor(a) principal: | |
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Data de Publicação: | 2010 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | BAR - Brazilian Administration Review |
Texto Completo: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922010000100005 |
Resumo: | This study attempts to empirically investigate how firms' experiential knowledge and the decision to invest sequentially in the host country are associated with the performance of their overseas subsidiaries. This research advances prior studies by adopting an objective performance measure based on the profitability ratio at the subsidiary level. Using a random-effect model of GLS regression applied to a panel data of Japanese firms established in Brazil, the results provide theoretical and practical implications showing that experiential knowledge is positively associated with subsidiary profitability. Local experiential knowledge can be acquired by managing subsidiaries for a long time in the host country, but also by increasing the number of investments in the local market. In practical terms, the subsidiary profitability ratio becomes higher when the parent firms have established more than five investments in the host country, although further investigation is needed to examine the direction of this relationship. Moreover, there is a significant association between subsidiary performance and the parent firms' experience in culturally similar markets to Brazil. The benefit of learning from international markets suggests that operating in countries with a similar culture transforms their experience into a competitive advantage. |
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BAR - Brazilian Administration Review |
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The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazilexperiential knowledgesubsequent FDIperformanceprofitabilityThis study attempts to empirically investigate how firms' experiential knowledge and the decision to invest sequentially in the host country are associated with the performance of their overseas subsidiaries. This research advances prior studies by adopting an objective performance measure based on the profitability ratio at the subsidiary level. Using a random-effect model of GLS regression applied to a panel data of Japanese firms established in Brazil, the results provide theoretical and practical implications showing that experiential knowledge is positively associated with subsidiary profitability. Local experiential knowledge can be acquired by managing subsidiaries for a long time in the host country, but also by increasing the number of investments in the local market. In practical terms, the subsidiary profitability ratio becomes higher when the parent firms have established more than five investments in the host country, although further investigation is needed to examine the direction of this relationship. Moreover, there is a significant association between subsidiary performance and the parent firms' experience in culturally similar markets to Brazil. The benefit of learning from international markets suggests that operating in countries with a similar culture transforms their experience into a competitive advantage.ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração2010-03-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922010000100005BAR - Brazilian Administration Review v.7 n.1 2010reponame:BAR - Brazilian Administration Reviewinstname:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)instacron:ANPAD10.1590/S1807-76922010000100005info:eu-repo/semantics/openAccessOgasavara,Mário Henriqueeng2010-01-26T00:00:00Zoai:scielo:S1807-76922010000100005Revistahttp://www.scielo.br/scielo.php?script=sci_serial&pid=1807-7692&lng=pt&nrm=isohttps://old.scielo.br/oai/scielo-oai.php||bar@anpad.org.br1807-76921807-7692opendoar:2010-01-26T00:00BAR - Brazilian Administration Review - Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)false |
dc.title.none.fl_str_mv |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil |
title |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil |
spellingShingle |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil Ogasavara,Mário Henrique experiential knowledge subsequent FDI performance profitability |
title_short |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil |
title_full |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil |
title_fullStr |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil |
title_full_unstemmed |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil |
title_sort |
The role of experiential knowledge and subsequent investment decisions on the profitability of japanese companies in Brazil |
author |
Ogasavara,Mário Henrique |
author_facet |
Ogasavara,Mário Henrique |
author_role |
author |
dc.contributor.author.fl_str_mv |
Ogasavara,Mário Henrique |
dc.subject.por.fl_str_mv |
experiential knowledge subsequent FDI performance profitability |
topic |
experiential knowledge subsequent FDI performance profitability |
description |
This study attempts to empirically investigate how firms' experiential knowledge and the decision to invest sequentially in the host country are associated with the performance of their overseas subsidiaries. This research advances prior studies by adopting an objective performance measure based on the profitability ratio at the subsidiary level. Using a random-effect model of GLS regression applied to a panel data of Japanese firms established in Brazil, the results provide theoretical and practical implications showing that experiential knowledge is positively associated with subsidiary profitability. Local experiential knowledge can be acquired by managing subsidiaries for a long time in the host country, but also by increasing the number of investments in the local market. In practical terms, the subsidiary profitability ratio becomes higher when the parent firms have established more than five investments in the host country, although further investigation is needed to examine the direction of this relationship. Moreover, there is a significant association between subsidiary performance and the parent firms' experience in culturally similar markets to Brazil. The benefit of learning from international markets suggests that operating in countries with a similar culture transforms their experience into a competitive advantage. |
publishDate |
2010 |
dc.date.none.fl_str_mv |
2010-03-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922010000100005 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922010000100005 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.1590/S1807-76922010000100005 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
text/html |
dc.publisher.none.fl_str_mv |
ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração |
publisher.none.fl_str_mv |
ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração |
dc.source.none.fl_str_mv |
BAR - Brazilian Administration Review v.7 n.1 2010 reponame:BAR - Brazilian Administration Review instname:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) instacron:ANPAD |
instname_str |
Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) |
instacron_str |
ANPAD |
institution |
ANPAD |
reponame_str |
BAR - Brazilian Administration Review |
collection |
BAR - Brazilian Administration Review |
repository.name.fl_str_mv |
BAR - Brazilian Administration Review - Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) |
repository.mail.fl_str_mv |
||bar@anpad.org.br |
_version_ |
1754209122972073984 |