Perceived institutional distance in the emerging market entry process

Mikael Hilmersson and Susanne Sandberg

International Journal of Business Environment, 2011, vol. 4, issue 3, 268-286

Abstract: We claim that difference in business environments is the result of differences between institutions. In this paper, a network perspective is taken on business markets and we set out to examine how differences in institutions are perceived in business relationships between firms originating from disparate business networks. The concept of perceived institutional distance is developed in three sequential stages. First, we conceptually develop the concept as an anchored theoretical construct. Second, we try out the concept empirically. Third, we verify the dimensions in which perceived institutional distance is manifested. The study reports from an on-site survey of 203 SMEs with experience of entering emerging markets. Five dimensions in which perceived institutional distance is manifested are presented: patience and rationality from the cognitive institutional pillar, distrust and reliability from the normative pillar, and sanctions from the regulative pillar.

Keywords: internationalisation processes; institutional networks; perceived institutional distance; on-site survey; managerial perceptions; Sweden; business relationships; business networks; SMEs; small and medium-sized enterprises; emerging markets; patience; rationality; distrust; reliability; sanctions; market entry. (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=41596 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijbenv:v:4:y:2011:i:3:p:268-286

Access Statistics for this article

More articles in International Journal of Business Environment from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().