How institutions matter for international business: Institutional distance effects vs institutional profile effects

Abstract

Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

An overview of Hofstede-inspired country-level culture research in international business since 2006

“…As several scholars have pointed out, under certain conditions, sample structure may lead to a conflation of distance with level effects (Brouthers et al, 2016;van Hoorn & Maseland, 2016, but see also Edwards, 2001Edwards, , 2002 for a more general discussion on difference scores). When estimating distance effects empirically, it is critical to include multiple home and multiple host countries and control for level effects.…”

Institutions in Transition: Is the Eu Integration Process Relevant for Inward Fdi in Transition European Economies?

“…The supporting formal institutions, which include laws and regulations, private property, protection and equality of parties in the judiciary system, allow businesses to operate at a lower transaction cost, and to invest more securely (Van Hoorn and Maseland, 2016). Yet, there is no evidence to consider this type of institution-building to be the result of the EU integration process.…”

Avaliação sobre a instrumentalização empírica do tripé da estratégia: análise das fraquezas e oportunidades

“…Institutional distance is related to the formal and informal institutions of each country (Berry, Guillen, & Zhou, 2010), and was used by some articles (Barin Cruz et al, 2013, Ju et al, 2014 as a proxy for to IV. Van Hoorn and Maseland (2016) distinguish between the measurement of the effects of the institutional profile and the use of institutional distance in international business research. Differently from the institutional distance, the institutional profile measures the institutional characteristics in the market where it is wanted to evaluate.…”

“…However, they point out that the use of distance does not allow us to ascertain if institutional challenges arise from characteristics of the company's home market or destination. This is because distance measures dissimilarity between countries, not separating two distinct effects that may have different strategic outcomes in organizations (Van Hoorn & Maseland, 2016). This is especially relevant because there may be differences in institutional pressures suffered by highly globalized firms compared to local operating firms (Varadarajan, 2015).…”

“…Institutional distance measures are used when measuring IV, although these concepts have different definitions and also result in different effects (see discussion in Van Hoorn & Maseland, 2016). In this sense, this article draws attention to the weaknesses in the operationalization of the tripod of the strategy.…”