The impact of institutional hazards on foreign multinational activity: A contingency perspective

Slangen, Arjen; Beugelsdijk, Sjoerd

doi:10.1057/jibs.2010.1

Cited by 198 publications

(172 citation statements)

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“…We first adopt the widely used Worldwide Governance Indicator (WGI) constructed by Kaufman, Kraay, & Mastruzzi (2009). WGI is widely used in recent studies on the impact of institutions on firms' internationalization decisions (e.g., Cantwell, Dunning, & Lundan, 2010;Gu & Lu, 2011;Slangen & Beugelsdijk, 2010). Among six dimensions of WGI, we use Regulatory quality in our main analyses because it directly captures the soundness of policies and regulations that permit and promote private sector development, including inward FDI (Kaufman, Kraay, & Mastruzzi, 2009).…”

Section: Independent Variablesmentioning

confidence: 99%

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

et al. 2014

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This is the accepted version of the paper.This version of the publication may differ from the final published version. sub-sample analyses we identify differences between entering developed and developing host countries in terms of the impact of home country government support and quality of host country institutions. Our findings help explain the puzzle concerning why EE firms have rapidly internationalized in a short period of time and do not follow the pattern predicted by classical IB theories. In comparison with studies from developed country contexts, our findings also highlight that the effect of home country support may be context specific. Permanent repository link

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Section: Independent Variablesmentioning

confidence: 99%

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

et al. 2014

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“…Formal institutional distance has therefore not only the more commonly emphasised frictional effects (e.g., Slangen & Beugelsdijk, 2010;Schwens et al, 2011), but also enabling ones (Rugman & Verbeke, 2001). The enabling effect of formal institutions is, in particular, expected to play a role for subsidiaries located in developed countries.…”

Section: Formal Institutional Distance and Intra-organisational Relatmentioning

confidence: 99%

“…Birkinshaw et al, 1998;Forsgren et al, 2005). The institutional friction literature neglects such external relationships since they are seen as threats to the MNE, for example because of a lack of property rights protection or inefficient contract enforcement mechanisms in countries at a greater formal institutional distance (Henisz & Williamson, 1999;Feinberg & Gupta, 2009;Slangen & Beugelsdijk, 2010).…”

Section: Formal Institutional Distance and Inter-organisational Relatmentioning

confidence: 99%

“…The concept of institutional distance has found numerous applications in empirical research across the international business literature (Slangen & Beugelsdijk, 2010;Schwens et al, 2011;Salomon & Wu, 2012), and is an established part in transaction cost economics research, therein often utilised as a proxy for informal institutional distance, that is uncertainty caused by differing habits, values or norms (Zaheer et al, 2012). Ghemawat (2001) has reinforced the general importance of distance in an international business context in his seminal article.…”

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confidence: 99%

“…Slangen and Beugelsdijk (2010) suggest that for that purpose, subsidiary level data might be useful to further understand the effects of institutional distance in that context. This study therefore utilises survey data from a census database of foreign-owned manufacturing sector subsidiaries located in the Northwest of England, in order to narrow the stated gap in the current subsidiary development literature.…”

mentioning

confidence: 99%

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The Effects of Institutional Distance on Foreign-Owned Subsidiary Development: The Case of the Northwest of England

Dahms¹

2014

IJBM

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The purpose of this paper is to analyse the effects of institutional distance on foreign-owned subsidiary development. In particular, a distinction between direct and indirect effects of formal and informal institutional distance is proposed and empirically tested. Based on a bespoke census database of all known foreign-owned subsidiaries in the Northwest of England a postal survey has been conducted. The results indicate that informal institutional distance does have a pronounced negative effect on the level of intra-and inter-organisational relationships and decision-making autonomy in foreign-owned subsidiaries. The direct effect of formal institutional distance seems to be less relevant, however, it is becoming significant when the interaction between formal and informal institutional distance is considered. The specific contribution of this study lies in the systematic and comprehensive investigation of the formal and informal institutional distance between home and host country and their effects on subsidiary development. It is one of the first studies to provide a theoretically sound investigation, based on new institutional economics and internalisation theory, of the interaction between formal and informal institutional distance in the context of foreign-owned subsidiaries.

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International Business

Noi¹

2012

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The impact of institutional hazards on foreign multinational activity: A contingency perspective

Cited by 198 publications

References 54 publications

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

The Effects of Institutional Distance on Foreign-Owned Subsidiary Development: The Case of the Northwest of England

International Business

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