The dynamics of Japanese firm growth in U.S. industries: The Penrose effect

Danchi Tan, Joseph T. Mahoney

Research output: Contribution to journalArticle

Abstract

■ This paper proposes that multinational firms that are more capable in developing new managerial resources are less vulnerable to the Penrose effect in the process of international expansion. 

■ We hypothesize that firms were more capable to achieve growth in consecutive time periods when they send more expatriates to the local operations and when they have greater home experience before entering into the local market. 

■ The empirical results based on a sample of Japanese investments in the United States support our arguments.

Original languageEnglish (US)
Pages (from-to)259-279
Number of pages21
JournalManagement International Review
Volume47
Issue number2
DOIs
StatePublished - Jan 1 2007

Keywords

  • Development managerial resources
  • Expatriates
  • Firm growth
  • Japan
  • Multinational firms
  • Penrose effect

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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