Formal and Informal Institutional Differences Between Home and Host Country and Location Choice: Evidence from the Spanish Hotel Industry

Romero‐Martínez, Ana M.; Muiña, Fernando Enrique García; Chidlow, Agnieszka; Larimo, Jorma

doi:10.1007/s11575-018-0369-8

Cited by 22 publications

(14 citation statements)

References 125 publications

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“…The concept of geographic distance has been studied and used extensively in the institutional and transaction cost literature (Dunning, 2009; Gooris & Peeters, 2014; Romero‐Martínez et al, 2019). The physical distance between an acquirer and a target can limit access to information (Chakrabarti & Mitchell, 2016).…”

Section: Methodsmentioning

confidence: 99%

“…This framework captures the challenges an investor could anticipate in a new market. The barriers that governments impose on foreign investors along with the level of a host country's economic and political stability is often approached from the perspective of institutions (LiPuma et al, 2013; Meyer et al, 2009; Romero‐Martínez, García‐Muiña, Chidlow, & Larimo, 2019). The concept of institutions in cross‐border investment analysis has previously been combined with the transaction costs approach (Foss, Klein, & Bjørnskov, 2019; Meyer, 2001).…”

Section: Introductionmentioning

confidence: 99%

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A merry host makes bolder guests: An analysis of cross‐border investment choices of Chinese firms

Соловьева

Yamini

Wei

2020

Thunderbird Intl Bus Rev

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This article explores the influence of a host country's conditions on foreign equity investment decisions made by China‐based firms using the assumptions of the institutional theory and transaction cost approach. We use multinomial logit regression to analyze a sample of 1,018 cross‐border investments by Chinese firms categorized into majority acquisitions, minority acquisitions, joint ventures (JVs), and venture capital. According to our findings, Chinese investors prefer to conduct foreign direct investment in the same industry. This, in turn, highlights their desire to gain market influence and learn or obtain strategic knowledge and resources. Furthermore, taxation is proved to encourage the establishment of foreign JVs. The interaction between the host country's tax levels and majority acquisitions in the same industry reveals the concern of Chinese investors with after‐tax returns and influence in the new market.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A merry host makes bolder guests: An analysis of cross‐border investment choices of Chinese firms

Соловьева

Yamini

Wei

2020

Thunderbird Intl Bus Rev

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“…However, there have been few empirical studies examining non-economic factors for hotel location. Romero-Martinez, Garcia-Muina, Chidlow & Larimo (2019) showed that in the case of hotel chains, cultural differences, linguistic differences and formal institutional factors may be important location determinants. Albert & Rechnitzer (2018), on the other hand, stated in their study that not all the reasons for choosing a location are objective as sometimes the opening of a hotel is a spontaneous decision.…”

Section: Behavioral Aspects Of the Process Of Hotel Location Choicementioning

confidence: 99%

Behavioral Factors in Hotel Location: a Study of Hotels from Opole Province in Poland

Puciato

2020

Tour

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The choice of location is one of the key economic decisions for hotel owners. In modern economics traditional premises are increasingly questioned, and assumptions are often made involving imperfect competition, limited rationality of behavior, and the incomplete scope of information or the inability to use it effectively. This is also reflected in the theory of location within which a behavioral trend has been developed assuming the occurrence of non-economic, subjective factors in making location decisions. The aim of the paper is to identify behavioral factors in hotel location in Opolskie Province in Poland. The paper uses four main research methods: literature review, documentation, diagnostic survey and individual case studies. The study results confirm the importance of the behavioral approach in the process of selecting a location for independent hotels in Opolskie Province, involving the choice of secondary or primary locations. In the latter case, the decision-making process is based entirely on behavioral factors or is supplemented by them in situations where an objective approach is not connected with decision-making certainty. Behavioral factors such as intuition, emulation, experience, place of origin and residence, individual cases and the influence of others should be regarded as highly significant.

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“…Despite this, only a few past studies analyzed OFDI location choice in the tourism industry (García-Muiña, Romero-Martínez, & Kabbara, 2020;Kundu & Contractor, 1999;Romero-Martínez, García-Muiña, Chidlow, & Larimo, 2019). Specifically, those addressing that decision in the case of Chinese tourism MNEs are still very scarce (Deng, Hu, & Yang, 2019;Li, Huang, & Song, 2017).…”

Section: Introductionmentioning

confidence: 99%

Location decisions of Chinese firms in the global tourism industry: The role of prior international experience and diplomatic relations

Quer

2021

Journal of Hospitality and Tourism Management

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As latecomers to the global tourism industry, Chinese multinational enterprises (MNEs) encounter difficulties to engage in outward foreign direct investments relying only on their firm-specific assets. As a result, they usually resort to external resources, combining them with the generic capabilities they possess. One source of these alternative resources derives from the existence of good diplomatic relations between China and other countries. Friendly bilateral relationships may provide Chinese firms with useful institutional support to compensate for their latecomer disadvantages when establishing in foreign destinations. Drawing on the composition-based view and the international political economy perspective, this study argues that the combination of firm's prior international experience and good diplomatic relations between countries is positively associated with location decisions of Chinese tourism MNEs.The findings indicate that high-level government official visits and strategic partnerships contribute to that compositional effect.

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Formal and Informal Institutional Differences Between Home and Host Country and Location Choice: Evidence from the Spanish Hotel Industry

Cited by 22 publications

References 125 publications

A merry host makes bolder guests: An analysis of cross‐border investment choices of Chinese firms

A merry host makes bolder guests: An analysis of cross‐border investment choices of Chinese firms

Behavioral Factors in Hotel Location: a Study of Hotels from Opole Province in Poland

Location decisions of Chinese firms in the global tourism industry: The role of prior international experience and diplomatic relations

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