Entry Mode Choices in Transition Economies: The Moderating Effect of Institutional Distance on Managers’ Personal Experiences

Abstract

This article examines the moderating effect of institutional distance on the relation between personal experiences of chief executive officers (CEOs) and entry mode choice. Hypotheses are tested with data on 156 foreign direct investments made by west-European multinational enterprises in 10 central and eastern European economies in the 1992–2002 period of transition. Two demographic features are examined: CEOs’ age and international experience. The results provide support for the theory that the impact of CEOs’ experiences on the entry mode choice is conditional on the institutional distance between home and host countries.

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