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 chosen for foreign subsidiaries in emerging markets. Specifically, we explore 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 subsidiaries in 18 emerging markets. Results strongly support a novel specification that forges a link between the capabilities and the public and private expropriation hazards literatures.