Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity

Getachew, Yamlaksira S.; Beamish, Paul W.

doi:10.1016/j.jwb.2021.101226

Cited by 19 publications

(3 citation statements)

References 60 publications

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“…The more attractive the market, the more foreign investment in the host country, which means that a country can offer lower asset transfer costs, thus attracting investors. There is a positive relationship between market attractiveness and equity patterns [ 65 ]. Therefore, this paper selects the FDI of the host country in the year before the year in which the investment activities take place to measure the market attraction of the host country and uses its logarithm value in the calculation.…”

Section: Methodsmentioning

confidence: 99%

How do creative assets affect overseas market entry modes of enterprises– the moderating role of internal and external factors

Wang,

Tao,

Cui

et al. 2024

PLoS ONE

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In the process of transnational investment management, the choice of entry mode is one of the key decisions, and creative assets will affect the choice of overseas market entry mode. However, few studies have analyzed how creative assets affect firms’ overseas market entry patterns. This paper takes 480 overseas investment data of 134 Chinese listed enterprises from 2012 to 2019 as research samples and uses the Logistic model to study the influence of creative assets owned by enterprises on their choice of the joint venture and wholly owned modes. At the same time, we examine the formal and informal institutional distance between home and host countries, and the moderating effect of firms’ own experience in the process of model selection. In addition, using the fuzzy-set qualitative comparative analysis (fsQCA) from the perspective of configuration to explore the different paths of overseas market entry mode. The research results indicate that marketing intensity and technical intensity of enterprises have a positive and significant impact on overseas investment patterns, that is, higher marketing intensity or technical intensity will prompt enterprises to preferentially choose wholly-owned mode. Formal institutional distance and experience can moderate the relationship between creativity and investment mode to some extent, while informal institutional distance has no significant moderating effect on creative assets and investment mode. Three configurations can induce firms to choose the wholly-owned mode, and only one configuration can induce firms to choose the joint venture mode. This study lays a theoretical foundation for enterprises to enter the overseas market.

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Section: Methodsmentioning

confidence: 99%

How do creative assets affect overseas market entry modes of enterprises– the moderating role of internal and external factors

Wang,

Tao,

Cui

et al. 2024

PLoS ONE

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“…Institutional differences and economic development are two of the most important factors associated with firm survival (Gaur et al, 2019;Getachew & Beamish, 2021;Sartor & Beamish, 2020). The pattern of institutional and economic development generates regional differences, commonly captured in the trade literature by the classifications of North and South regions (Therien, 1999;Schamp & Stamm, 2012).…”

Section: Introductionmentioning

confidence: 99%

The survival of outward investments from China and India: Is there a North-South divide?

Athreye

Saeed

Baloch

2023

Journal of Business Research

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“…The institutional quality of a country's environment may vary substantially, and firms must adapt to the constraints imposed by the institutional environment of the countries in which they operate. Some studies have focused on how multinational firms from developed economies enter host markets that have a low level of institutional quality (Luo, 2005;Meyer, Estrin, Bhaumik, & Peng, 2009;Elg, Ghauri, Child, & Collinson, 2017), and how host country institutions impact firm's strategy (Svendsen & Haugland, 2011;Tang & Buckley, 2020) and subsidiary performance (Pattnaik, Choe, & Singh, 2015;Getachew & Beamish, 2021). Other research has analyzed the extent to which the home country's institutional environment either promotes or discourages the internationalization of emerging market firms, with mixed results.…”

Section: Introductionmentioning

confidence: 99%

How an emerging market firm overcomes liabilities and builds legitimacy in a high-quality institutional environment

Rocha

2023

Internext

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Objective: To examine how an emerging market firm adopts specific strategies to neutralize the liabilities of foreignness (LOF), emergingness (LOE) and outsidership (LOO), and to gain legitimacy in a high-quality institutional environment. Method: Single in-depth case study of a Brazilian firm in the information technology industry based on secondary data and interviews. Main Results: The study shows how the acquisition of a local company addressed the three liabilities: LOF, by acquiring knowledge on the host country’s institutional environment; LOE, by detaching the company image from the home country and emphasizing a global image; and LOO, by gaining access to already established connections to international networks by the acquired firm. Relevance/ Originality: There is still a dearth of literature on how firms from emerging economies other than China — and particularly from Latin America — strategize to mitigate LOF, LOE and LOO when internationalizing to high-quality institutional environments. Theoretical/ Methodological Contributions: To provide a fine-grained view of the relationship between LOF, LOE and LOO and their manifestations; and to provide an understanding of the relationship between the liabilities and the legitimation strategies adopted to overcome them along the international expansion of an emerging market high-tech firm from Latin America.

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Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity

Cited by 19 publications

References 60 publications

How do creative assets affect overseas market entry modes of enterprises– the moderating role of internal and external factors

How do creative assets affect overseas market entry modes of enterprises– the moderating role of internal and external factors

The survival of outward investments from China and India: Is there a North-South divide?

How an emerging market firm overcomes liabilities and builds legitimacy in a high-quality institutional environment

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