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Local clusters of SOEs, POEs, and FIEs, international experience, and the performance of foreign firms operating in emerging economies

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  • Liao, Tsai-Ju

Abstract

Drawing on the institutional perspective, this study provides an empirical framework for analyzing how clusters within local institutional environments, along with experience derived from international environments, influence the performance of foreign firms operating in emerging economies. Analyzing a sample of 943 Taiwanese manufacturing firms investing in China, this study found that choosing to locate in proximity to a cluster of privately owned enterprises (POEs) has a U-shaped relationship with the performance of foreign firms, and that choosing to locate close to a cluster of foreign-invested enterprises (FIEs) from the same home country has an inverted U-shaped relationship with the performance of foreign firms. However, choosing to locate within a cluster of state-owned enterprises (SOEs) has no significant effect. Further analysis confirms that the positive impact of a business group's international experience in a less developed country is greater than that of a business group's international experience in a developed country.

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  • Liao, Tsai-Ju, 2015. "Local clusters of SOEs, POEs, and FIEs, international experience, and the performance of foreign firms operating in emerging economies," International Business Review, Elsevier, vol. 24(1), pages 66-76.
    • Handle: RePEc:eee:iburev:v:24:y:2015:i:1:p:66-76
    DOI: 10.1016/j.ibusrev.2014.06.002
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    Cited by:

    1. Ryan W. Tang & Siegfried P. Gudergan, 2018. "A Meta-analysis of the International Experience–Ownership Strategy Relationship: A Dynamic Capabilities View," Management International Review, Springer, vol. 58(4), pages 541-570, August.
    2. Holmes, R. Michael & Hoskisson, Robert E. & Kim, Hicheon & Wan, William P. & Holcomb, Tim R., 2018. "International strategy and business groups: A review and future research agenda," Journal of World Business, Elsevier, vol. 53(2), pages 134-150.
    3. Aguilera, Ruth V. & Crespí-Cladera, Rafel & Infantes, Paula M. & Pascual-Fuster, Bartolomé, 2020. "Business groups and internationalization: Effective identification and future agenda," Journal of World Business, Elsevier, vol. 55(4).
    4. Shengjun Zhu & Canfei He & Qian Luo, 2019. "Good neighbors, bad neighbors: local knowledge spillovers, regional institutions and firm performance in China," Small Business Economics, Springer, vol. 52(3), pages 617-632, March.
    5. Jeoung Yul Lee & Asli M. Colpan & Yeon-Sik Ryu & Tomoki Sekiguchi, 2022. "What do we know about the internationalization of Asian business groups? A systematic review and future research agenda," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 802-830, November.
    6. Jonas Fernando Petry & Mohamed Amal & Dinorá Eliete Floriani, 2018. "Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil," Brazilian Business Review, Fucape Business School, vol. 15(3), pages 302-316, May.

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