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Experience and a firm's performance in foreign markets: A commentary essay

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  • Delios, Andrew

Abstract

Wu and Lin (2010) extend several prominent themes in the experience and subsidiary performance literature in their empirical examination of the foreign expansion of Taiwanese MNEs. This commentary essay considers the themes in Wu and Lin (2010) against the backdrop of the considerable volume of research that has been conducted on experiential learning and firm performance in both the international business and strategy literatures. Five weak axioms about the relationships between experience, foreign market entry strategy, and performance emerge in this review. Based on these weak axioms, the commentary concludes that scholars need to concentrate future research on understanding the management and process-related issues that concern the effective management of a firm's experiential learning processes to foster better capability and knowledge development from a firm's experience, as well as translate such developments into improved performance prospects for a firm.

Suggested Citation

  • Delios, Andrew, 2011. "Experience and a firm's performance in foreign markets: A commentary essay," Journal of Business Research, Elsevier, vol. 64(2), pages 227-229, February.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:2:p:227-229
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    Cited by:

    1. de Vasconcellos, Silvio Luis & Garrido, Ivan Lapuente & Parente, Ronaldo Couto, 2019. "Organizational creativity as a crucial resource for building international business competence," International Business Review, Elsevier, vol. 28(3), pages 438-449.
    2. Tang, Qingqing & Gu, Flora F. & Xie, En & Wu, Zhan, 2020. "Exploratory and exploitative OFDI from emerging markets: Impacts on firm performance," International Business Review, Elsevier, vol. 29(2).
    3. Louis Mulotte, 2014. "Do Experience Effects Vary Across Governance Modes? Evidence from New Product Introduction in the Global Aircraft Industry, 1948–2000," Organization Science, INFORMS, vol. 25(3), pages 757-775, June.
    4. Mulotte, L., 2013. "Do experience effects vary across governance modes? Evidence from new product introduction in the global aerospace industry, 1948–2000," Other publications TiSEM 2c79d4d6-2b71-4160-9781-f, Tilburg University, School of Economics and Management.
    5. Garg, Garima & Sewak, Mayank & Sharma, Anurag, 2022. "Learning from Older Siblings: Impact On Subsidiary Performance," International Business Review, Elsevier, vol. 31(3).
    6. Piotr Trapczynski, 2013. "Determinants Of Foreign Direct Investment Performance – A Critical Literature Review," Oeconomia Copernicana, Institute of Economic Research, vol. 4(2), pages 117-132, June.

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