Institutional difference, organizational experience, and foreign affiliate performance: Evidence from Polish firms

Trąpczyński, Piotr; Banalieva, Elitsa R.

doi:10.1016/j.jwb.2016.07.013

Cited by 65 publications

(57 citation statements)

References 76 publications

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“…In this scenario, a greater negative difference increases the perception of uncertainty and lack of protection for its transactions and, as a consequence, the probability of the firm entering that country is reduced. With this result, our article is in line with other studies that have found that institutional distance has an asymmetric effect on other international decisions or their results (Chikhouni et al, ; Hernandez & Nieto, ; Trąpczyński & Banalieva, ).…”

Section: Discussionsupporting

confidence: 92%

“…Some scholars have found that these distances have differing impacts on internationalization decisions. Thus, the effect of asymmetry of distance has been shown in decisions such as: entry mode choice (Hernandez & Nieto, 2015); the amount of ownership acquired in the host country (Chikhouni et al, 2017); the level of the firm's product innovation (Wu, 2013); the influence of headquarters over subsidiaries (Brock, Shenkar, Shoham, & Siscovick, 2008;Drogendijk & Holm, 2012); and even affiliates' performance (Trąpczy nski & Banalieva, 2016). We are focusing on the asymmetric effect on a decision about which there has been less research-the location decision (Hutzschenreuter et al, 2016).…”

Section: The Effect Of Institutional Distance On Internationalizatimentioning

confidence: 99%

“…In particular, we extend the research by considering that the difference between the institutional quality levels of the host and home countries are a factor that should be analyzed in terms of both magnitude and direction. Previous research has examined the asymmetric effect of institutional distance on: entry mode choices (Hernandez & Nieto, 2015); ownership stake in acquisitions (Chikhouni, Edwards, & Farashahi, 2017); and affiliates' performance (Trąpczy nski & Banalieva, 2016). We focus on examining this issue in order to explain the decision on location choice, about which there is hardly any evidence.…”

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confidence: 99%

“…Second, by considering family ownership and management, we add to the international location choice literature by including firm factors in the analysis (Duanmu, 2012;Jain, Kothari, & Kumar, 2016;Strange et al, 2009). Only recently have certain studies taken into account the effect of firm factors, such as experience, together with the asymmetrical effect of distance (Trąpczy nski & Banalieva, 2016). Given that FDI decisions are influenced by family ownership and control (Bhaumik, Driffield, & Pal, 2010;Filatotchev, Strange, Piesse, & Lien, 2007), we consider it important to introduce the effect of family involvement.…”

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confidence: 99%

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The asymmetric effect of institutional distance on international location: Family versus nonfamily firms

Hernández

Nieto

Boellis

2018

Global Strategy Journal

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Research Summary: This study examines international location choice by considering the potential effects of institutional distance on the decision comparing family and nonfamily firms. We argue that the magnitude and direction of institutional distance matter and that institutional distance has an asymmetric effect on location choice. However, we argue that family involvement has a moderating effect on this relationship because family firms manage institutional distance differently than nonfamily counterparts. Our results, using a sample of Italian firms (2000–2013), reveal that firms are more likely to choose locations for which the positive institutional distance is greater. Additionally, when compared to nonfamily firms, family firms are more likely to choose locations with greater negative institutional distance and less likely to enter countries with greater positive institutional distance. Managerial Summary: Institutional distance between countries is an important dimension firms take into account when deciding the location of their foreign investments. We show the importance of the magnitude and direction of this distance in choosing the destination country and the different impact that distance has for family firms. Institutional distance has an asymmetric effect on the international location choice. Specifically, greater positive institutional distance makes firms more likely to choose a location; on the contrary, greater negative institutional distance makes the location less attractive. Family firms, however, present some peculiarities that fine‐tune the effect of institutional distance on the location decision. Thus, family firms are more (less) likely to choose locations involving lower (higher) levels of institutional development than their home country compared to nonfamily counterparts.

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Section: Discussionsupporting

confidence: 92%

Section: The Effect Of Institutional Distance On Internationalizatimentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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The asymmetric effect of institutional distance on international location: Family versus nonfamily firms

Hernández

Nieto

Boellis

2018

Global Strategy Journal

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“…Third, although we theorize and observe that internal contingencies shape the role of exporters' learning capabilities, conditions in the external macro-environment may offer additional insights into how firms benefit from such capabilities. The institutional development literature suggests conditions in developed home markets contrast those in emerging ones, and shape how firms learn in and beyond their home markets (Aulakh, Kundu, and Lahiri 2016;Tr pczy ski and Banalieva 2016). In anticipation of differences in external environment conditions across nations, we explore whether export learning processes help (or hinder) exporters of the United Kingdom (U.K.) and China.…”

Section: Introductionmentioning

confidence: 99%

Do Export Learning Processes Affect Sales Growth in Exporting Activities?

Assadinia

Boso²,

Hultman³

et al. 2019

Journal of International Marketing

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The understanding of experiential learning through export learning process (XLP), and its outcomes, is limited in the international marketing literature. Using multisource, time-lagged data of exporting firms in the United Kingdom and China, this study finds that XLP is positively associated with marketing strategy adaptation for both U.K. and Chinese exporters. Results suggest contrasting moderating effects of experiential knowledge resources (i.e., psychic dispersion, multinationality, and duration) and strategy adaptation on the relationship between XLP and export sales growth in the two samples. In the U.K. sample, the authors observe a positive moderation effect of psychic dispersion and negative moderation effects of multinationality and duration. For the China sample, they find the exact opposite pattern of moderation effects for the experiential knowledge resources. Marketing strategy adaptation plays a negative moderation role in the China sample but has no such effect in the U.K. sample. The study has implications for theory development on, and the productive management of, processes of learning export management.

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Location capabilities, institutional distance, and start‐up survival

Bustamante

Matusik

Benavente³

2021

Global Strategy Journal

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Location considerations play a key role in shaping venture performance. Using data from the largest accelerator in the world, we examine the effects of institutional distance and location capabilities on international start-ups' survival rates. We find that international start-ups' survival is shaped by whether it internationalizes to a country with stronger or weaker institutions than those in its home country.

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Institutional difference, organizational experience, and foreign affiliate performance: Evidence from Polish firms

Cited by 65 publications

References 76 publications

The asymmetric effect of institutional distance on international location: Family versus nonfamily firms

The asymmetric effect of institutional distance on international location: Family versus nonfamily firms

Do Export Learning Processes Affect Sales Growth in Exporting Activities?

Location capabilities, institutional distance, and start‐up survival

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