The influence of institutional void and socio-cultural factors on the internationalization of emerging multinationals

Nouhaila Ettalibi, Murugesh Arunachalam, Thao Nguyen and Kashif ur Rehman

Research in International Business and Finance, 2025, vol. 73, issue PA

Abstract: The process of firm internationalization involves critical decisions regarding location, entry mode, investment levels, and the management of foreign operations. This paper examines the effects of institutional voids and socio-cultural factors on the internationalization of Emerging Multinationals (EMNCs) from the BRICS and MENA regions. We draw on institutional and internationalization theories to explain how socio-cultural factors influence the internationalization of EMNCs. Using the two-step system GMM over a ten-year period (2012–2021), we find that institutional voids, religious diversity, power distance, and a firm’s ESG practices at home positively impact internationalization. These findings contribute to the literature by quantifying key variables related to internationalization, cultural diversity, institutional voids, power distance, and ESG engagement.

Keywords: Internationalization; Multinationals; Religiosity; Culture; CSR (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:73:y:2025:i:pa:s0275531924003982

DOI: 10.1016/j.ribaf.2024.102605

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