We investigate the effect of firm-specific advantages being ‘local’ in scope, and the influence of subsequent location-specific disadvantages, on the choice of foreign entry mode and subsidiary performance. To look into this issue, we examine Japanese FDI data from the wholesale and retail...

Studies on foreign direct investment (FDI) have concentrated on sectoral effects, but rarely on country patterns, In this paper, we use U.S. Department of Commerce data to identify the largest country shares of new FDI entries into the U.S. and the technological motivations for their...

How are excess resources redeployed when an industry declines? These resources can be redeployed within the firm through diversification and across firms through a market interface. Acquisitions can play an important role in either of these mechanisms. First, acquisitions can provide new...

Firms frequently need to update their capabilities in changing environments but face significant barriers to accomplish this goal due to the stickiness of their routines, local search constraints, bounded rationality, uncertain imitability, and causal ambiguity. Under high levels of uncertainty,...