Institutional difference, organizational experience, and foreign affiliate performance: Evidence from Polish firms

Piotr Trąpczyński and Elitsa R. Banalieva

Journal of World Business, 2016, vol. 51, issue 5, 826-842

Abstract: We draw from the institutional economics and organizational learning theories to clarify two international business debates. The first debate involves how institutional distance affects foreign affiliate performance: some propose a negative and others a positive direct effect. We clarify this debate by differentiating between negative and positive institutional difference. The second debate involves how experience modifies this relationship: some propose a negative and others a positive moderating effect. We clarify this debate by differentiating between similar and dissimilar experience, creating four moderating effects: Advantage of Challenge Anticipation, Advantage of Opportunity Anticipation, Disadvantage of Polymath Downgrading, and Disadvantage of Specialist Upgrading.

Keywords: Institutional difference; Experience; Foreign affiliate performance; Institutional economics; Organizational learning theory; Polish infant multinationals; Mixed-method design (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (21)

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DOI: 10.1016/j.jwb.2016.07.013

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