Institutional fragility and internationalization of Indian firms: Moderating effects of inward FDI and linkages

Vikrant Shirodkar, Rishika Nayyar and Sumati Varma

Journal of World Business, 2024, vol. 59, issue 3

Abstract: In this paper, using institutional and organizational learning theories, we argue that institutional fragility within India impacts the internationalization of Indian firms such that firms from more fragile regions are likely to have lower internationalization levels. We also suggest that this effect is moderated by inward (industry-level) foreign direct investment (FDI) and inward (firm-level) linkages with foreign firms. We test our hypotheses based on the analysis of 707 Indian firms over the period 2008–2018. Our study contributes to the literature examining the complexity, and the speed and consistency of institutional progress in emerging economies, and its impact on firms’ internationalization.

Keywords: Emerging market multinational enterprises; Institutional theory; International business; India; Subnational institutions (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.jwb.2023.101502

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