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Resource curse impacts on the co-evolution of emerging economy institutions and firm internationalization

Charles Funk, Len J. Treviño and Juliet Oriaifo

International Business Review, 2021, vol. 30, issue 4

Abstract: We investigate natural resource “curse” impacts on co-evolutionary relationships between emerging economy institutions and firm internationalization. We discuss how these relationships challenge and extend IB institutional research using three predominant resource curse characteristics (boom and bust cycles with related public discourse and “Dutch Disease” with associated manufacturing sector investment crowd-out). These characteristics alter regulative, normative and cognitive institutional impacts on state- and privately-owned firm internationalization during an emerging economy’s resource curse. We develop propositions describing these processes using oil and gas, manufacturing and service sector examples in several emerging economies. We discuss our theoretical contributions to the resource curse and international business literatures and outline future research directions.

Keywords: Resource curse; Institutional theory; Organizational co-evolution; Emerging economies; State-owned enterprises (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.ibusrev.2020.101753

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