دانلود رایگان مقاله اقتصاد نوظهور و کیفیت نهادی

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.

5. Discussion

The findings of this study improve our understanding of TCE and institutional theory. As evident in the finding that there exist opposite effects of formal and informal distance on EMNC ownership positions, the salience of governance efficiency (i.e. high ownership) or legitimacy threat (i.e. low ownership) in the host market can be explained based on the unique context of EMNC internationalization. This test of the boundary condition of institutional distance was not readily available before the emergence of EMNCs. Prior to 2000, the prevalence of AMNCs’ investment in emerging economies had not presented the opportunity to study a scenario in which EMNCs were motivated to engage in the foreign expansion to escape from their stifling regulatory institutional environments.