Learning breakdown in latecomer multinational enterprises

Tian, X. (2017) Learning breakdown in latecomer multinational enterprises. Asia Pacific Journal of Management, 34 (4). pp. 823-850.

Abstract

Integrating the linkage, leverage, and learning (LLL) model with institutional economics, this paper develops a moderated mediation framework to examine the relationship between internationalization and the performance of multinational enterprises from latecomer economies (latecomer MNEs). In the framework, whether a latecomer MNE may succeed in learning and knowledge-led profit gains from internationalization is contingent on the development of market-oriented institutions in the country in which it is based. Latecomer MNEs based in countries with a high level of the development of market-oriented institutions are likely to succeed in learning to obtain knowledge-led profit gains from internationalization. Latecomer MNEs based in countries with a low level of the development of market-oriented institutions are likely to experience a breakdown in learning, and a failure in knowledge-led profit gains from internationalization. This paper provides robust evidence on the relationship between internationalization and the performance of latecomer MNEs conditional on the development of market-oriented institutions in their home countries, and discusses strategic implications for latecomer MNE managers.

Item Type:	Journal Article
Murdoch Affiliation(s):	School Of Business and Governance
Publisher:	Springer
Copyright:	© 2017 Springer Science+Business Media New York
URI:	http://researchrepository.murdoch.edu.au/id/eprint/36104

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