The survival of new domestic and foreign-owned firms

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Abstract

We compare the survival of new domestic and foreign-owned firms. We analyze the determinants of the survival of new firms and investigate whether foreignness accounts for significant differences in the survival of new foreign and new domestic firms. We find survival to be determined by ownership advantages, size and growth strategies, the internal organization of firms, and by industry characteristics such as economies of scale, and industry entry and growth. After controlling for these characteristics, we find that domestic and foreign firms do not exhibit different chances of survival, that they respond in similar fashions to the determinants of survival and display identical time patterns of exit.

Original languageEnglish
Pages (from-to)323-343
Number of pages21
JournalStrategic Management Journal
Volume23
Issue number4
DOIs
Publication statusPublished - Apr 2002

Keywords

  • Exit
  • Foreign firms

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