The Effects of Entry Timing on Subsidiary Survival

The Effects of Entry Timing on Subsidiary Survival

A number of studies have examined several factors that may influence MNCs' subsidiary performance. Nevertheless, only a few studies have considered the effects of entry timing. Drawing on the resource-based and knowledge-based theories, the current study has developed an empirically testable model that explains the relationship between entry timing and subsidiary mortality. The study hypothesizes that entry timing affects subsidiary mortality and that marketing intensity, innovation intensity, and host-culture experience moderate the relationship between entry timing and subsidiary mortality. The model is tested with a comprehensive data set drawn from multiple secondary data sources and the event history analysis. The results of the study show that all the hypotheses are accepted. Finally, this study discusses implications for theory and practice, indicates limitations, and concludes with some suggestions for future research.