The Performance Impact of Informal and Formal Institutional Differences in Cross-Border Alliances

Sougand Golesorkhi, Roy Mersland, Trond Randøy and Oded Shenkar
Additional contact information
Roy Mersland: UIA - University of Agder

Post-Print from HAL

Abstract: This study addresses the simultaneous and diverse effects of differences in informal and formal institutions on cross-border alliances' financial performance. We utilize data from 405 microfinance institutions (MFIs), based in 74 developing countries, that have alliances with partners from developed countries. We find that the impact of informal institutional differences between MFIs and their cross-border partners is sigmoid-shaped, with performance first increasing, then declining, before improving again as informal institutional differences grow large. By contrast, formal institutional differences appear to be detrimental to MFIs' performance. Consistent with our prediction, we find that MFIs' cross-border experience moderates both formal and informal institutional effects.

Keywords: Cross-border alliance; Performance; Informal institutional differences; Formal institutional differences; Microfinance industry; Cross-border alliance Performance Informal institutional differences Formal institutional differences Microfinance industry (search for similar items in EconPapers)
Date: 2019
Note: View the original document on HAL open archive server: https://hal.science/hal-05221021v1
References: Add references at CitEc
Citations:

Published in International Business Review, 2019, 28 (1), pp.104-118. ⟨10.1016/j.ibusrev.2018.08.006⟩

Downloads: (external link)
https://hal.science/hal-05221021v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05221021

DOI: 10.1016/j.ibusrev.2018.08.006

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().