Host Countries’ Institutional Environment and Multinational Enterprises: Does Home-Host Developmental Status Matter?

Muhammad Usman (), Rizwan Shabbir, Ilyas Ahmad () and Ahsan Zubair ()
Additional contact information
Muhammad Usman: University of Education, Lahore
Rizwan Shabbir: Government College University
Ilyas Ahmad: University of Education
Ahsan Zubair: Universiti Teknologi Malaysia

Journal of the Knowledge Economy, 2022, vol. 13, issue 4, No 2, 2640-2664

Abstract: Abstract This study examines the impact of host countries’ institutional effectiveness on the financial performance and innovation of multinational enterprises (hereafter MNEs). More specifically, we try to explore how MNEs behave in terms of performance and innovation when their home country and host country are at the same economic development status or otherwise. To achieve the aforementioned research objective, we collected data of MNEs and divided it into four categories based on home and host country’s economic development status; i.e., (I) MNEs from developing countries expand to other developing countries, (II) MNEs from developed countries expand to other developed countries, (III) MNEs from developing countries expand to developed countries, and (IV) MNEs from developed countries expand to developing countries. The findings of the study indicate that host countries’ institutional environment impacts the performance and innovation of MNEs. Such a relationship is more prominent among MNEs belong to the countries having the same economic developmental status as host countries. But, such association cannot be the same when MNEs from developed countries expanded their operations to the developing countries or vice versa. According to the best of our knowledge and belief, we did not find any relevant study which investigates that how and to what extent countries’ institutional environment affects the performance and innovation of MNEs when the home countries’ economic development status is the same and/or different from host countries’ economic development status.

Keywords: Multinational enterprises (MNEs); Institutional effectiveness; Performance; Innovation; Developed countries; Developing countries (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s13132-021-00826-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jknowl:v:13:y:2022:i:4:d:10.1007_s13132-021-00826-6

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-021-00826-6

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().