Institutions, firm resources and the foreign establishment mode choices of Chinese firms: The moderating role of home regional institutional development

Yulong Liu and Yang Yu

Journal of Business Research, 2018, vol. 93, issue C, 111-121

Abstract: Although the foreign establishment mode choices of emerging market enterprises (i.e. the choice between mergers and acquisitions and greenfield investment) are attracting increasing research attention within international business, there is limited understanding of the firm-specific resources and institutional conditions under which intra-national institutional differences might affect foreign establishment mode choices. This paper helps to bridge this gap by investigating how home regional institutional developments influence firms' foreign establishment mode choices, the moderating impact of firms' international experiences, and the institutional qualities of host countries on this relationship. Using primary data from a large survey conducted in China and secondary data from public sources, our results show that a firm's international experience and the institutional quality of the host country moderates the effects of home regional institutional development on establishment mode choices by mitigating the liabilities of foreignness and the reliance on home institutions inherent to emerging market enterprises.

Keywords: Home regional institutional development; Foreign establishment mode choice; International experience; Institutional quality; Chinese enterprises (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296318302029
Full text for ScienceDirect subscribers only

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:eee:jbrese:v:93:y:2018:i:c:p:111-121

DOI: 10.1016/j.jbusres.2018.04.026

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().