Can strong home country institutions foster the internationalization of MNEs?

Xiaoming He · Lin Cui

59 citations0/0 files storedMultinational Business Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

International Business and FDI Corporate Finance and Governance International Student and Expatriate Challenges

Abstract

Purpose While many studies on institutional environment have primarily focused on the influence of the host country environment, limited insights have been offered on how the different dimensions of home institutions affect firm internationalization. This paper aims to fill this gap by investigating the effects of regulatory institutions at home. Design/methodology/approach Using country governance quality to proxy quality of regulatory institutions, this study attempts to reveal how regulatory institutions at home facilitate a multinational enterprise's (MNE's) international expansion and why the influence differs in different country clusters. Using hierarchical linear modeling and cluster analysis, proposed hypotheses were tested with a three‐year panel of 511 firms from 38 countries. Findings The results provide substantial support for the authors' hypotheses that MNEs with high governance quality at home are more engaged in internationalization than those with low governance quality at home. Moreover, differences in institutional effect do exist between country clusters. Practical implications This study provides evidence that while country differences exist, governance quality at home can facilitate MNEs' expansion into foreign markets. This finding will help managers of any MNEs to consider country‐level factors and evaluate the governance quality at home before committing resources into foreign operations. Originality/value Building on the institutional environment literature, this theory and results make original contributions by underscoring how the consideration of regulatory institutions at home can significantly improve understanding of institutional influence on MNEs. The findings have important implications for both international business researchers and managers of MNEs.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 59 citations exist upstream.

References

1990Institutions, Institutional Change and Economic Performance 1991Institutions, Institutional Change and Economic Performance 1998Law and Finance 2001Varieties of Capitalism 1999Why do Some Countries Produce So Much More Output Per Worker than Others?2003Varieties of Capitalism: The Institutional Foundations of Comparative Advantage 1991Strategic Responses to Institutional Processes 1990WHAT'S IN A NAME? REPUTATION BUILDING AND CORPORATE STRATEGY.

Cited by

2021Home country institutions and exports of firms in transition economies: Does innovation matter?2020R&D Intensity, Domestic Institutional Environment, and SMEs’ OFDI in Emerging Markets 2014The determinants of the internationalization speed of Portuguese university spin-offs: An empirical investigation 2016The Effects of Home Country Political and Legal Institutions on Firms' Geographic Diversification Performance 2020Home country institutional drivers and performance outcomes of export market orientation: the moderating role of firm resources

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.