Japanese firms' investment strategies in emerging economies

This study jointly examines the effects of organizational capabilities and public and private expropriation hazards on the level of equity ownership c hosen for foreign subsidiaries in emerging markets. Specifically, we explor e the mechanisms by which 680 Japanese multinational corporations drew upon capabilities developed via industry-specific, country-specific, and total international experience to mitigate these hazards for their 2,827 subsidia ries in 18 emerging markets. Results strongly support a novel specification that forges a link between the capabilities and the public and private exp ropriation hazards literatures.