Title:LEARNING FROM PRIORFDI FAILURES– IF AND WHEN THEY MAY HAPPEN: EVIDENCE FROM KOREAN MNES

Speaker:Yuping Zeng, Southern Illinois University

Time: 14:00-15:30pm, Friday, June 28, 2013

Location:Room 110, New Building of GSM, Peking University

Abstract：

This study examines conditions under which MNEs canlearn from their FDI failures. Drawing on literature about learning from failures, we argue that FDI failure experiencestimulates learningthat reduces future failure. We also identify contingency factors that may affect the effectiveness of this learning. Using alongitudinal dataset of Korean MNEs’ FDIs,we find that MNEs’ FDI failure experiencesare negatively associated with their future FDI failures. This relationship is weakened by the cultural distance between the host countries of the failed FDIs and the home country,as well as by the percentage of joint ventures amongthe failed FDIs.However, it isstrengthened by theinvestmentsize and hostmarket size of the failed FDIs,as well asby peer MNEs’ failure experiences.