Learning and information transmission within multinational corporations
نویسندگان
چکیده
Firms face substantial uncertainty when doing business in new markets. We propose that multinational firms use “cross-market learning” to resolve such uncertainties. develop a model of firm-level expectations formation with noisy signals from multiple markets and derive predictions on market entries over the firm’s life cycle. Using novel dataset Japanese corporations includes sales each affiliate, we provide supportive evidence for model’s predictions. find rely their performance nearby predict profitability make entry decisions. Such “cross-market” learning is less important after firm has accumulated experience market, but becomes more if focal high or received
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ژورنال
عنوان ژورنال: European Economic Review
سال: 2022
ISSN: ['1873-572X', '0014-2921']
DOI: https://doi.org/10.1016/j.euroecorev.2021.104016