Internationalization of Firms: The Role of Institutional Distance on Location and Entry Mode

Laura Vanoli Parietti
University of Fribourg, Switzerland

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Product Details
22 Feb 2017
Emerald Publishing Limited
256 pages - 152 x 229mm
Parietti addresses one of the most important topic scrutinized by the scholars of International Business. Distance between two countries is a multidimensional concept, including not only a geographical dimension but also other dimensions related to the culture, the administrative, political and economic aspects as shown by Ghemawat (2001) and its “CAGE” framework, as well as by Berry et al. (2010) and their nine dimensions of cross-national distance. In the last decade, van Tulder (2010) notes that the research tends to be oriented towards the institutional and governance distance between countries. Many scholars have emphasized the role of institutions in the internationalization process of firms (Cantwell et al., 2010; Dunning and Lundan, 2008; Van Hoorn and Maseland, 2016). Institutional distance has been used primarily to explain the location and entry mode choices based on the concept of “liability of foreignness” introduced by Zaheer (1995). Nevertheless, previous studies show contradictory results due to differences in terms of conceptualization and measurement of institutional distance.
1. Institutional Distance: Conceptualization and Measurements 2. Institutional Distance, Location, and Entry Mode Choice: Theoretical Foundations 3. Institutional Distance and Location Choice of Swiss FDI: A Country-Level Analysis 4. Institutional Distance, Location, and Entry Mode Choice of Swiss FDI: A Firm-Level Analysis Appendices Bibliography Index
Laura Vanoli Parietti, University of Fribourg, Switzerland
Filling some gaps in the institutional distance literature, Parietti argues for the choice of institutional distance measures, distinguishes between determinants of location and entry mode choice in manufacturing and services sectors, considers the effect of institutional distance on entry mode not only in terms of ownership choice but also in terms of establishment choice, and empirically integrates the effects of variables based on different theoretical streams (especially organizational learning and network/cluster approaches.

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