The use of favors by emerging market managers: Facilitator or inhibitor of international expansion?

Managerial ties, strategic initiatives, and firm performance in Central Asia and the Caucasus

“…Our results suggest that lower levels of institutional development may increase the frequency with which firms seek to form ties with managers at other firms but not necessarily with government officials. A possible reason for the lack of support for the relationship between institutional efficiency and ties with government officials may be that firms do not view such ties to be valuable, and, instead, rely more on ties with managers at other firms (often through professional associations) as the means to get things done (Puffer et al, 2013). These findings are different from the China findings, which generally point to the greater importance of ties with government officials as opposed to ties with managers at other firms (Peng & Luo, 2000).…”

“…with government officials-have long argued to be an area commanding managers' attention in emerging economies (Peng & Heath, 1996;Puffer et al, 2013). Both forms of ties have been documented to impact firm performance in emerging economies such as China (Li, Poppo, & Zhou, 2008;Peng & Luo, 2000), Ghana (Acquaah, 2007), Hungary (Danis, Chiaburu, & Lyles, 2010), Russia (Puffer & McCarthy, 2007), and South Korea (Kwon, 2011).…”

Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust

“…While the influence of time and space distance on international knowledge acquisition can be offset by ICT, that of institutional distance, which deals with country-specific dimensions of contextual variation (such as regulatory and legal factors, cultural norms and cognitive beliefs) may be difficult to tackle due to Bliability of foreignness,^which poses social costs of doing businesses in international markets (Puffer, McCarthy, Jaeger, & Dunlap, 2013). This study thus attempts to extend existing research on knowledge acquisition in international business exchange by looking into the context-specific barriers derived from institutional distance between foreign and host country partners in Asia Pacific regions.…”

Theoretical Foundations

“…For example, although managerial networking remains an important phenomenon across emerging economies, substantial differences exist in the practices of building, maintaining, and utilizing network relationships (Batjargal, 2007;Michailova & Worm, 2003). Also the relative importance of different types of networking partners varies: whereas in Russia and China ties between managers and officials appear most important (Okhmatovskiy, 2010;Peng & Luo, 2000;Peng, Sun, & Markóczy, 2015;Puffer et al, 2013), in Africa ties with ruling party incumbents or with tribal leaders are more valuable (Acquaah, 2007).…”