Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Institutional Environment and Subsidiary Survival

Charles Dhanaraj and Paul W. Beamish
MIR: Management International Review
Vol. 49, No. 3 (2009), pp. 291-312
Published by: Springer
Stable URL: http://www.jstor.org/stable/40658316
Page Count: 22
  • Download ($43.95)
  • Cite this Item
Institutional Environment and Subsidiary Survival
Preview not available

Abstract

We examine the effect of the institutional environment (IE) on the mortality of overseas subsidiaries. We develop hypotheses to study the impact of political openness and social openness, two dimensions of the institutional environment and how joint venture status moderates these relationships. We test our hypotheses using a sample of 12,000+ Japanese overseas investments from 1986-1997 in 25 countries, using Cox hazard models. Our results suggest that the sociopolitical context has a strong influence on the mortality of overseas subsidiaries. We theorized a negative main effect for political and social openness and positive interaction effects with openness when the FDI is through a JV. The results are consistent with the hypotheses. However, political and social openness show significantly different influences on subsidiary mortality.

Page Thumbnails

  • Thumbnail: Page 
[291]
    [291]
  • Thumbnail: Page 
292
    292
  • Thumbnail: Page 
293
    293
  • Thumbnail: Page 
294
    294
  • Thumbnail: Page 
295
    295
  • Thumbnail: Page 
296
    296
  • Thumbnail: Page 
297
    297
  • Thumbnail: Page 
298
    298
  • Thumbnail: Page 
299
    299
  • Thumbnail: Page 
300
    300
  • Thumbnail: Page 
301
    301
  • Thumbnail: Page 
302
    302
  • Thumbnail: Page 
303
    303
  • Thumbnail: Page 
304
    304
  • Thumbnail: Page 
305
    305
  • Thumbnail: Page 
306
    306
  • Thumbnail: Page 
307
    307
  • Thumbnail: Page 
308
    308
  • Thumbnail: Page 
309
    309
  • Thumbnail: Page 
310
    310
  • Thumbnail: Page 
311
    311
  • Thumbnail: Page 
312
    312