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Uncertainty, imitation, and plan location : japanese multinational corporations, 1990-1996

By: HENISZ, Witold J.
Contributor(s): DELIOS, Andrew.
Material type: materialTypeLabelArticlePublisher: 2001Administrative Science Quarterly 46, 3, p. 443-475Abstract: In a study of a sample of 2,705 international plant location decisions by listed Japanese multinational corporations across a possible set of 155 countries in the 1990-1996 period, we use neoinstitutional theory and research on political institutions to explain organizational entry into new geographic markets. We extend neoinstitutional theory`s proposition that prior decisions and actions by other organizations provide legitimization and information to a decision marked by uncertainty, showing that this effect holds when the uncertainty comes from a firm`s lack of experience in a market byt not when the uncertainty derives from the structure of a market`s policymaking apparatus
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In a study of a sample of 2,705 international plant location decisions by listed Japanese multinational corporations across a possible set of 155 countries in the 1990-1996 period, we use neoinstitutional theory and research on political institutions to explain organizational entry into new geographic markets. We extend neoinstitutional theory`s proposition that prior decisions and actions by other organizations provide legitimization and information to a decision marked by uncertainty, showing that this effect holds when the uncertainty comes from a firm`s lack of experience in a market byt not when the uncertainty derives from the structure of a market`s policymaking apparatus

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