We examine the relationship between the foreign market entry strategy and the subsequent growth of a subsidiary. e build upon the Penrose theory of firm growth, and on the organizational economics, international management, and foreign market entry strategy literatures. We hypothesize that the postentry growth of acquisitions is positively associated with weak and codifiable interdependence within the multinational enterprise network, whereas the post-entry growth of greenfield investments is positively related to strong and complex interdependence. Empirical findings from a sample of Japanese subsidiaries in the US lend support to our argument.
Journal of International Business Studies, 40, 1046-1063