Institutional open access at home and outward internationalization

Sunny Li Sun; Mike W. Peng; Ruby P. Lee; Weiqiang Tan

doi:10.1016/j.jwb.2014.04.003

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 journal › Journal article › peer-review

170 Citations (Scopus)

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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 language	English
Pages (from-to)	234-246
Number of pages	13
Journal	Journal of World Business
Volume	50
Issue number	1
Early online date	12 Jun 2014
DOIs	https://doi.org/10.1016/j.jwb.2014.04.003
Publication status	Published - Jan 2015

Scopus Subject Areas

Business and International Management
Finance
Marketing

User-Defined Keywords

Institutional open access
Internationalization
Institutional transitions
Institution-based view
China

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10.1016/j.jwb.2014.04.003

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title = "Institutional open access at home and outward internationalization",

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.",

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author = "Sun, {Sunny Li} and Peng, {Mike W.} and Lee, {Ruby P.} and Weiqiang Tan",

note = "Funding Information: Earlier versions of this article were presented at the Academy of International Business (San Diego, June 2009) and the University of Texas at Dallas (June 2009). We thank Greg Dess, Seung-Hyun Lee, Yuan Li, Zhiang (John) Lin, Livia Markoczy, and Eric Tsang for helpful comments. This research was supported in part by the National Science Foundation of the United States (NSF CAREER SES 0552089), the National Natural Science Foundation of China (NSFC 71132006), Kemper Summer Research Grant from Bloch School of Management, UMKC, and the Jindal Chair at UT Dallas. All views are those of the authors and not necessarily those of the underwriters. ",

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N2 - 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.

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Institutional open access at home and outward internationalization

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