Jing Yu Yang

Will a Second Mouse Get the Cheese? Learning from Early Entrants' Failures in a Foreign Market

We examine the conditions that can facilitate or hinder the effectiveness with which a new entrant learns from the failures of prior entrants by analyzing the experiences of 822 Japanese subsidiaries in China founded between 1979 and 2000. Our conceptual arguments and empirical findings demonstrate that learning from the failure experiences of prior entrants increases a new entrants survival chances when entering China. Further, we find that the value of this learning is less effective when there is a greater level of heterogeneity in the causes of these failures. However, this learning is more effective when a new entrants parent firm has ownership ties with investors who had ventures that failed previously in China.

Speed to Legal Registration and Nascent Venture Performance: A Temporal Dilemma for Nascent Entrepreneurs in an Emerging Economy

In this paper, we examine the effect of a nascent ventures speed to legal registration during its formation on the initial venture performance in an emerging economy. Quickly obtaining legitimacy via legal registration in the early stages of a new ventures formation accelerates its resources acquisition and transition to other start‐up activities, facilitating the venture to seize dynamic entrepreneurial opportunities; however, in an emerging economy, quick legal registration also incurs substantial costs and compliance activities that may inhibit the ventures engagement in other start‐up activities. A nascent venture in an emerging economy suffers from being either too fast (early) or too slow (late) in registering its business during the formation process, and the relationship between the speed to registration and nascent venture performance is best reflected by an inverse U‐shape. Moreover, the inverse U‐relationship becomes more pronounced when the entrepreneurial opportunity is more innovative. Based on analyzing 145 nascent entrepreneurs from the event history data set of the China Panel Study of Entrepreneurial Dynamics (CPSED), we found strong support for our arguments.

Foreign Direct Investment Communities and the Legitimation of Wholly-owned Foreign Subsidiaries in China

In this chapter, data on the establishment of wholly-owned foreign subsidiaries in China are used to study to what extent the prior existence of wholly-owned subsidiaries in a host country has the effect of legitimizing this form of subsidiary. The legitimization process is explored applying institutional and ecological perspectives at the population level, rather than as a firm-level phenomenon. The results will show that the establishment of wholly-owned subsidiaries was related to the prior existence of both wholly-owned subsidiaries and joint ventures in China, and that this legitimizing effect spilled over from foreign investors in other industries and from other home countries.