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

101 Citations (Scopus)

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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