Institutional open access at home and outward internationalization

Sunny Li Sun*, Mike W. Peng, Ruby P. Lee, Weiqiang TAN

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    130 Citations (Scopus)
    17 Downloads (Pure)

    Abstract

    While voluminous research has focused on the impact of host country institutions on foreign entrants, the rise of outward internationalization of firms from emerging economies is challenging this research stream. Limited work has been done to investigate a crucial question: How do home country institutions influence firms from emerging economies to engage in outward internationalization? Inspired by North's insights on institutional open access, we develop an institution-based framework highlighting intra-country (sub-national) regional differences within a large emerging economy. Specifically, we argue that greater institutional open access in a particular region of a home country-in the areas of legal environment openness and financial market openness-leads to greater outward internationalization of local firms headquartered in that region. Further, tenure of that region's governor moderates such relationships in different ways. Our multilevel analysis with 5239 observations (company-years) finds that institutional open access is indeed behind some Chinese firms' outward internationalization.

    Original languageEnglish
    Pages (from-to)234-246
    Number of pages13
    JournalJournal of World Business
    Volume50
    Issue number1
    DOIs
    Publication statusPublished - 1 Jan 2015

    Scopus Subject Areas

    • Business and International Management
    • Finance
    • Marketing

    User-Defined Keywords

    • China
    • Institution-based view
    • Institutional open access
    • Institutional transitions
    • Internationalization

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