Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5107172 | Journal of World Business | 2016 | 12 Pages |
Abstract
The current study contributes to the institution-based view of internationalization that is contingent upon the home country development. We examine the differential effects of formal and informal institutions on emerging market multinational corporations' (EMNCs) ownership strategies. Facing a large informal institutional distance that represents diverse cultural beliefs, EMNCs opt for a low ownership position that alleviates legitimacy threat, whereas a large formal institutional distance leads EMNCs to establish dominant ownership control. EMNC home market conditions, including market size and regulatory institutional quality, further explain the differential effects of institutional distances.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Ru-Shiun Liou, Mike Chen-Ho Chao, Monica Yang,