Internationalization and survival of foreign subsidiaries of emerging economy multinationals

Abstract

This research examines the factors expected to influence the survival of foreign ventures of internationalizing firms from an emerging economy. It examines the relationship between firm specific resources shaped by the characterstics of the home country environment and their influence on the subsequent survival of the international venture (joint ventures, wholly owned subsidiary or acquisitions) of firms from less developed countries. The study also examines the interrelationship between the location and firm specific resources and their influence on the survival of the foreign venture. The study is conducted using event history analysis for discrete or grouped data on a sub-sample of foreign ventures of Indian firms. It contributes to the empirical literature on the internationalization and survival of emerging economy multinationals and brings together the discussions on the theories of FDI and their application to Emerging Economy multinational firms.