Competition, learning, and foreign entry strategy: A macro organization perspective

Jiatao Li, Jing Yu Yang

Research output: Journal PublicationArticlepeer-review

3 Citations (Scopus)


Drawing on organization theory perspectives, this chapter investigates how multinational enterprises (MNEs) based in different home countries influence each other's foreign entry decisions. The proposition that the subsidiaries of multinationals from different countries constitute a reference environment and that this environment provides important information for potential new entrants was tested with panel data on foreign entries from 55 home countries into China from 1979 to 1995. The rate of new entries from a focal home country was found to correlate with the number of foreign subsidiaries already established by firms from other home countries with cultures similar to that of the focal home country. This was interpreted as reflecting transnational learning and competition. Uncertainty derived from home-host-country trade ties and cultural differences was shown to moderate this transnational mimetic learning.

Original languageEnglish
Pages (from-to)219-240
Number of pages22
JournalAdvances in International Management
Publication statusPublished - 2009
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management


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