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Cross-Border Knowledge Transfer

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Research Paper No. 1518 CROSS-BORDER KNOWLEDGE TRANSFER AND PERFORMANCE IN EMERGING ECONOMIC REGIONS: THE CASE OF JAPANESE INTERNATIONAL JOINT VENTURES IN CHINA
TAKEHIKO ISOBE UNIVERSITY OF MARKETING AND DISTRIBUTIONSERVICES KOBE, JAPAN SHIGE MAKINO THE CHINESE UNIVERSITY OF HONG KONG DAVID B. MONTGOMERY

Stanford University

September 8, 1998

CROSS-BORDER KNOWLEDGE TRANSFER AND PERFORMANCE IN EMERGING ECONOMIC REGIONS: THE CASE OF JAPANESE INTERNATIONAL JOINT VENTURES IN CHINA1

By TAKEHIKO ISOBE Associate Professor Department of Commerce University ofMarketing and Distribution Sciences 3-1 Gakuen Nishimachi, Nishi-ku, Kobe, Japan Phone: 81-78-794-3516 / Fax: 81-78-794-6149 Email: Takehiko_Isobe@red.umds.ac.jp

SHIGE MAKINO Assistant Professor Department ofManagement The Chinese University of Hong Kong Shatin, N.T., Hong Kong Phone: 852-2609-7636 / Fax: 852-2603-5104 makino @baf.msmail.cuhk.edu.hk

DAVID B. MONTGOMERY S.S. Kresge Professor ofMarketing Strategy Graduate School ofBusiness Stanford University Stanford, CA 94305-5015 Phone: 650-723-3029 I Fax: 650-725-9932 MontgomeryDavid@gsb.stanford.EDU

September 8, 1998

Please send all correspondences to Shige Makino.

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CROSS-BORDER KNOWLEDGE TRANSFER AND PERFORMANCE IN EMERGING ECONOMIC REGIONS: THE CASE OF JAPANESE INTERNATIONAL JOINT VENTURES IN CHINA

Abstract. As emerging economic regions (EERs) play a significant role in global economies, managers of multinationals have become increasingly aware of the importance of relevant international expansion in these regions. Facing potential market opportunities, the managers are eager to gain first mover advantages and build technology leadership in the EERs. However, given nontrivial uncertainties in EERs, the efforts to be first movers and technology leaders in these regions may not result in successful performance. This study examined whether first movers and technology leaders would attain superior performance in EERs. Building...