Emerging market MNEs engaging in upward FDI. The Role of Institutional Distance on the Capability-Internationalization Relationship
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2019-08-27
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en
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Abstract
The internationalization behaviour of emerging market multinationals (EM MNEs) towards destinations with a good institutional environment is relatively new territory to IB-scholars. In this study the capability-internationalization relationship of EM MNEs internationalizing towards developed countries is researched utilizing multiple regression analysis. Using a sample of 201 EM MNEs coming from China and Taiwan mostly, we investigate the effects of their R&D capabilities, marketing capabilities, institutional distance between their home and host countries, and interaction effects on their scope of internationalization. We found that only institutional distance is a positive antecedent for greater scope of internationalization in institutionally developed nations. All the results are then compared to predictions of mainstream IB theories, i.e. the OLI-paradigm, the Springboard theory, and the LLL-framework.
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Faculteit der Managementwetenschappen