Document Type

Journal Article

Department/Unit

Department of Finance and Decision Sciences

Language

English

Abstract

While voluminous research has focused on the impact of host country institutions on foreign entrants, the rise of outward internationalization of firms from emerging economies is challenging this research stream. Limited work has been done to investigate a crucial question: How do home country institutions influence firms from emerging economies to engage in outward internationalization? Inspired by North's insights on institutional open access, we develop an institution-based framework highlighting intra-country (sub-national) regional differences within a large emerging economy. Specifically, we argue that greater institutional open access in a particular region of a home country-in the areas of legal environment openness and financial market openness-leads to greater outward internationalization of local firms headquartered in that region. Further, tenure of that region's governor moderates such relationships in different ways. Our multilevel analysis with 5239 observations (company-years) finds that institutional open access is indeed behind some Chinese firms' outward internationalization.

Keywords

China, Institution-based view, Institutional open access, Institutional transitions, Internationalization

Publication Date

1-2015

Source Publication Title

Journal of World Business

Volume

50

Issue

1

Start Page

234

End Page

246

Publisher

Elsevier

Peer Reviewed

1

Copyright

Copyright © 2014 Elsevier Inc. All rights reserved.

Funder

This research was supported in part by the National Science Foundation of the United States (NSF CAREER SES 0552089), the National Natural Science Foundation of China (NSFC 71132006), Kemper Summer Research Grant from Bloch School of Management, UMKC, and the Jindal Chair at UT Dallas.

DOI

10.1016/j.jwb.2014.04.003

Link to Publisher's Edition

http://dx.doi.org/10.1016/j.jwb.2014.04.003

ISSN (print)

10909516

Available for download on Thursday, February 01, 2018

Share

COinS