Asia Pacific Journal of Management

, Volume 34, Issue 4, pp 823–850 | Cite as

Learning breakdown in latecomer multinational enterprises

  • Xiaowen Tian


Integrating the linkage, leverage, and learning (LLL) model with institutional economics, this paper develops a moderated mediation framework to examine the relationship between internationalization and the performance of multinational enterprises from latecomer economies (latecomer MNEs). In the framework, whether a latecomer MNE may succeed in learning and knowledge-led profit gains from internationalization is contingent on the development of market-oriented institutions in the country in which it is based. Latecomer MNEs based in countries with a high level of the development of market-oriented institutions are likely to succeed in learning to obtain knowledge-led profit gains from internationalization. Latecomer MNEs based in countries with a low level of the development of market-oriented institutions are likely to experience a breakdown in learning, and a failure in knowledge-led profit gains from internationalization. This paper provides robust evidence on the relationship between internationalization and the performance of latecomer MNEs conditional on the development of market-oriented institutions in their home countries, and discusses strategic implications for latecomer MNE managers.


Latecomer Multinational enterprise Learning Institutions 



I would like to thank the Editors of the Special Issue, Professors Jane Lu (University of Melbourne and National University of Singapore), Xufei Ma (Chinese University of Hong Kong), Lucy Taksa (Macquarie University), and Yue Wang (Macquarie University), for their encouragement and help in the revision process. I would like to thank three anonymous reviewers for their valuable comments and suggestions on the drafts of the papers. I would like to thank Professors Anoop Madhok (York University), Ravi Ramamurti (Northeastern Univeristy), and participants at the Special Issue workshop held in Macquarie University for their valuable comments. I would like to thank Mr. Hai Zhang for assistance in data collection.


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Copyright information

© Springer Science+Business Media New York 2017

Authors and Affiliations

  1. 1.School of Business and GovernanceMurdoch UniversityMurdochAustralia

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