The Impact of Cross-National Distance on Survival of Foreign Subsidiaries

Survival of overseas subsidiaries is an important success indicator of foreign investments. Research on institutional approaches has been undertaken in this way, but generally restricted to a limited number of cross-national distances (CNDs). This research examines the impact of nine...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Fabio Cassio-de-Souza, Mario Henrique Ogasavara
Formato:	article
Lenguaje:	EN PT
Publicado:	FUCAPE Business School 2018
Materias:	cross national distance foreign subsidiary survival internationalization longitudinal study Business HF5001-6182
Acceso en línea:	https://doaj.org/article/ee77cf706b274d0dba9351c28c20f1a0
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:ee77cf706b274d0dba9351c28c20f1a0
record_format	dspace
spelling	oai:doaj.org-article:ee77cf706b274d0dba9351c28c20f1a02021-11-11T15:48:07ZThe Impact of Cross-National Distance on Survival of Foreign Subsidiaries1807-734X10.15728/bbr.2018.15.3.5https://doaj.org/article/ee77cf706b274d0dba9351c28c20f1a02018-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123056425005https://doaj.org/toc/1807-734XSurvival of overseas subsidiaries is an important success indicator of foreign investments. Research on institutional approaches has been undertaken in this way, but generally restricted to a limited number of cross-national distances (CNDs). This research examines the impact of nine CNDs and local experience on subsidiary survival of foreign subsidiaries. Moreover, we tested the moderating effects of local experience on CND to analyze whether it could reduce these distances. Using a sample of 1,650 foreign subsidiaries established in 36 European countries, we applied Cox regression with a longitudinal analysis for the period 2007-2014. The results indicate that CND significantly affect subsidiary survival. Out of nine CND, four increase the risk of mortality, while one increases longevity. Local experience also plays a significant role for the continuity of the foreign operation in the local market, while moderating the impact between one CND and survival. These results can provide valuable information for strategic processes and better decision making of internationalization, and contribute to the success and survival of international operations.Fabio Cassio-de-SouzaMario Henrique OgasavaraFUCAPE Business Schoolarticlecrossnational distanceforeign subsidiarysurvivalinternationalizationlongitudinal studyBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 15, Iss 3, Pp 284-301 (2018)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	cross national distance foreign subsidiary survival internationalization longitudinal study Business HF5001-6182
spellingShingle	cross national distance foreign subsidiary survival internationalization longitudinal study Business HF5001-6182 Fabio Cassio-de-Souza Mario Henrique Ogasavara The Impact of Cross-National Distance on Survival of Foreign Subsidiaries
description	Survival of overseas subsidiaries is an important success indicator of foreign investments. Research on institutional approaches has been undertaken in this way, but generally restricted to a limited number of cross-national distances (CNDs). This research examines the impact of nine CNDs and local experience on subsidiary survival of foreign subsidiaries. Moreover, we tested the moderating effects of local experience on CND to analyze whether it could reduce these distances. Using a sample of 1,650 foreign subsidiaries established in 36 European countries, we applied Cox regression with a longitudinal analysis for the period 2007-2014. The results indicate that CND significantly affect subsidiary survival. Out of nine CND, four increase the risk of mortality, while one increases longevity. Local experience also plays a significant role for the continuity of the foreign operation in the local market, while moderating the impact between one CND and survival. These results can provide valuable information for strategic processes and better decision making of internationalization, and contribute to the success and survival of international operations.
format	article
author	Fabio Cassio-de-Souza Mario Henrique Ogasavara
author_facet	Fabio Cassio-de-Souza Mario Henrique Ogasavara
author_sort	Fabio Cassio-de-Souza
title	The Impact of Cross-National Distance on Survival of Foreign Subsidiaries
title_short	The Impact of Cross-National Distance on Survival of Foreign Subsidiaries
title_full	The Impact of Cross-National Distance on Survival of Foreign Subsidiaries
title_fullStr	The Impact of Cross-National Distance on Survival of Foreign Subsidiaries
title_full_unstemmed	The Impact of Cross-National Distance on Survival of Foreign Subsidiaries
title_sort	impact of cross-national distance on survival of foreign subsidiaries
publisher	FUCAPE Business School
publishDate	2018
url	https://doaj.org/article/ee77cf706b274d0dba9351c28c20f1a0
work_keys_str_mv	AT fabiocassiodesouza theimpactofcrossnationaldistanceonsurvivalofforeignsubsidiaries AT mariohenriqueogasavara theimpactofcrossnationaldistanceonsurvivalofforeignsubsidiaries AT fabiocassiodesouza impactofcrossnationaldistanceonsurvivalofforeignsubsidiaries AT mariohenriqueogasavara impactofcrossnationaldistanceonsurvivalofforeignsubsidiaries
_version_	1718433931528765440

The Impact of Cross-National Distance on Survival of Foreign Subsidiaries

Ejemplares similares