Distance factors and establishment mode choice of emerging-market multinationals: The moderating effect of administrative distance
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10045/118165
Title: | Distance factors and establishment mode choice of emerging-market multinationals: The moderating effect of administrative distance |
---|---|
Authors: | Rienda, Laura | Quer, Diego | Andreu, Rosario |
Research Group/s: | Dirección Estratégica, Conocimiento e Innovación en una Economía Global (DECI-GLOBAL) |
Center, Department or Service: | Universidad de Alicante. Departamento de Organización de Empresas |
Keywords: | Acquisitions | Administrative distance | EMNEs | Greenfield investments |
Knowledge Area: | Organización de Empresas |
Issue Date: | 24-Sep-2021 |
Publisher: | John Wiley & Sons |
Citation: | European Management Review. 2021, 18(4): 460-475. https://doi.org/10.1111/emre.12486 |
Abstract: | Regulations, governance quality, and political structure are important factors that may alter the cost and difficulties associated with doing business in foreign markets. Emerging-market multinationals (EMNEs), with an imperative motivation to go abroad and to be competitive in a global landscape, should consider the impact of administrative distance, namely, the regulatory institutional differences between home and host countries. We suggest that the study of administrative distance is particularly important when addressing investment flows from emerging economies to developed ones, because of the differences between them. Drawing on transaction cost theory and institutional perspective, we analyze the moderating effect of administrative distance on the relationship between other cross-national distance factors—cultural, geographic and economic—and establishment mode choice of EMNEs. From a sample of 357 outward foreign direct investments carried out by Indian firms, our results show that administrative distance moderates the relationship between cultural, geographic and economic distance, and establishment mode decisions. |
URI: | http://hdl.handle.net/10045/118165 |
ISSN: | 1740-4754 (Print) | 1740-4762 (Online) |
DOI: | 10.1111/emre.12486 |
Language: | eng |
Type: | info:eu-repo/semantics/article |
Rights: | © 2021 The Authors. European Management Review published by John Wiley & Sons Ltd on behalf of European Academy of Management (EURAM). This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made. |
Peer Review: | si |
Publisher version: | https://doi.org/10.1111/emre.12486 |
Appears in Collections: | INV - DECI-GLOBAL - Artículos de Revistas |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Rienda_etal_2021_EMR.pdf | 914,3 kB | Adobe PDF | Open Preview | |
This item is licensed under a Creative Commons License