Home country uncertainty and the internationalization-performance relationship: Building an uncertainty management capability
Mauricio Melgarejo and
Journal of World Business, 2018, vol. 53, issue 2, 209-221
We analyze the impact of home country uncertainty on the internationalization-performance relationship of emerging market firms. Building on organizational learning theory and the institutional approach, we argue that internationalization has a positive impact on the performance of emerging market firms, and that this relationship is strengthened for firms based in emerging countries with higher corruption and political risk. The reason is that by being exposed to high levels of home country uncertainty in the form of political risk and corruption, firms develop an uncertainty management capability at home that helps them face the challenges of internationalization better. We also propose that this uncertainty management capability helps emerging market firms perform better outside of their home region. We test our arguments on a sample of 536 firms from Argentina, Brazil, Chile, and Peru.
Keywords: Internationalization; Performance; Uncertainty; Political risk; Corruption; Emerging markets; Multinational firms; Latin America; Region (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:worbus:v:53:y:2018:i:2:p:209-221
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 620401/bibliographic
Access Statistics for this article
Journal of World Business is currently edited by David Collings and Jonathan Doh
More articles in Journal of World Business from Elsevier
Bibliographic data for series maintained by Haili He ().