Article ID Journal Published Year Pages File Type
1020251 Journal of International Management 2015 15 Pages PDF
Abstract

Firms operating in regulated physical infrastructure industries such as electricity, water or telecommunications do not always avoid the risks associated with governmental discretion when choosing a foreign country to invest in. We develop a theoretical framework based on the organizational capability view to account for the boundary conditions of this risk-seeking behavior: countries with a similar legal system as the one of the home country and with high infrastructure voids. An empirical analysis using panel data on the international expansion of Spanish listed firms from 1986 to 2008 confirmed our hypotheses.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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