University of Surrey

Test tubes in the lab Research in the ATI Dance Research

The Role of Subsidiary Learning Behavior and Absorptive Capacity in Foreign Subsidiary Expansion

Park, Hyeyoun and Chung, Chris C. (2019) The Role of Subsidiary Learning Behavior and Absorptive Capacity in Foreign Subsidiary Expansion International Business Review, 28 (4). pp685-695.

IBR Final.pdf - Accepted version Manuscript

Download (869kB) | Preview


We examine how subsidiaries can implement business expansion successfully to capitalize on growth potentials. Building on our baseline hypothesis, which examines the effect of the extent of business expansion on subsidiary divestment, we also identify the boundary condition of the tendency of subsidiary’s learning behavior in foreign expansion. Specifically, we argue that subsidiaries that expand multiple businesses through competence-creating learning behaviors are more likely to be divested due to increasing complexity. We further suggest a remedial condition to offer a viable approach to implement business expansion through competence-creating learning successfully. Based on a sample of 6,040 foreign subsidiaries operating over 14 years, we show that affiliates are more likely to expand into unfamiliar business domains successfully if they have operated a wider scope of business domains.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
Chung, Chris C.
Date : 13 February 2019
DOI : 10.1016/j.ibusrev.2019.01.006
Copyright Disclaimer : © 2019. Elsevier Ltd. All rights reserved.
Uncontrolled Keywords : Subsidiary business expansion; Competence-creating learning behaviour; Absorptive capacity; Subsidiary divestment
Depositing User : Users 6648 not found.
Date Deposited : 13 Mar 2019 09:59
Last Modified : 14 Aug 2020 02:08

Actions (login required)

View Item View Item


Downloads per month over past year

Information about this web site

© The University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom.
+44 (0)1483 300800