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

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Abstract and Key Results

  • 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.

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Authors and Affiliations

  1. National Chengchi University, Taiwan

    Danchi Tan (Assistant Professor of International Business)

  2. University of Illinois at Urbana-Champaign, Urbana-Champaign, USA

    Joseph T. Mahoney (Professor of Strategy)

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  1. Danchi Tan
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  2. Joseph T. Mahoney
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Tan, D., Mahoney, J.T. The dynamics of Japanese firm growth in U.S. Industries: The Penrose effect. MANAGE. INT. REV. 47, 259–279 (2007). https://doi.org/10.1007/s11575-007-0015-3

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  • DOI: https://doi.org/10.1007/s11575-007-0015-3

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