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Uncertainty, Imitation, and Plant Location: Japanese Multinational Corporations, 1990-1996
In a study of a sample of 2,705 international plant location decisions by listed Japanese multinational corporations across a possible set of 155 countries in the 1990-1996 period, we use neoinstitutional theory and research on political institutions to explain organizational entry into new geograph...
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Published in: | Administrative science quarterly 2001-09, Vol.46 (3), p.443-475 |
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container_title | Administrative science quarterly |
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creator | Henisz, Witold J. Delios, Andrew |
description | In a study of a sample of 2,705 international plant location decisions by listed Japanese multinational corporations across a possible set of 155 countries in the 1990-1996 period, we use neoinstitutional theory and research on political institutions to explain organizational entry into new geographic markets. We extend neoinstitutional theory's proposition that prior decisions and actions by other organizations provide legitimization and information to a decision marked by uncertainty, showing that this effect holds when the uncertainty comes from a firm's lack of experience in a market but not when the uncertainty derives from the structure of a market's policymaking apparatus. |
doi_str_mv | 10.2307/3094871 |
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ispartof | Administrative science quarterly, 2001-09, Vol.46 (3), p.443-475 |
issn | 0001-8392 1930-3815 |
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subjects | 2600 9130 9179 9510 Administrative science Asia & the Pacific Buildings and facilities Business enterprises Business structures Business studies Decision theory Diversification Economic uncertainty Enterprises Experimental/theoretical Financial investments Foreign direct investments Foreign investments Gross domestic product History Host country Hypotheses Imitations Industrial plant locations Influence International business enterprises Investment banking Investment strategies Japan Location Location of industry Management science/operations research Market entry Multinational corporations Multinational enterprises Peers Plant location Political systems Site selection Studies Tariffs Uncertainty |
title | Uncertainty, Imitation, and Plant Location: Japanese Multinational Corporations, 1990-1996 |
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