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By integrating the liability of foreignness and entry timing literature, this study examines the relationship among local condition (i.e. local density and location bound advantage), entry timing, and foreign subsidiary performance. Our analysis of 1047 foreign subsidiaries from an Asian NIE (Taiwan) in an emerging market (the People's Republic of China) indicate that local density was negatively related to foreign subsidiary performance and the location bound advantage was positively related to foreign subsidiary performance. We further show that these relationships were found to be significantly contingent on timing of subsidiary entry. Our findings highlight the importance of local conditions and entry timing in mitigating liability of foreignness and enhance foreign subsidiary performance. [ABSTRACT FROM AUTHOR]

By integrating the international experience and liability of foreignness literature, this study explores the contingencies relating firm's international experience and managerial capability to mitigate the liability of foreignness. Empirical results from a sample of 207 Taiwanese MNCs indicated that exploitative experience and explorative experience both significantly help firms to mitigate liability of foreignness. In addition, this study also found that managerial capability positively moderates the relationship between the experience and liability of foreignness, suggesting the effect is contingent on a firm's capability to deal with the mitigating of foreignness during international expansion. Theoretical implications of these results and suggestions for future research are also discussed. [ABSTRACT FROM AUTHOR]