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- Title
INSTITUTIONAL DISTANCE AND THE MULTINATIONAL ENTERPRISE.
- Authors
Xu, Dean; Shenkar, Oded
- Abstract
We draw from the recently developed construct of institutional distance to propose a framework that explains foreign direct investment by the multinational enterprise. We decompose the institutional distance between the host and home countries into distances on the regulative, normative, and cognitive dimensions of institutions, and match these with firm-level attributes to produce propositions regarding host country selection and foreign market entry strategies.
- Subjects
FOREIGN investments; INTERNATIONAL business enterprises; HOST countries (Business); DECISION making; MARKET entry; INSTITUTIONAL investments; INSTITUTIONAL theory (Sociology); STRATEGIC planning; FOREIGN partnerships; NATIONALITY of corporations
- Publication
Academy of Management Review, 2002, Vol 27, Issue 4, p608
- ISSN
0363-7425
- Publication type
Article
- DOI
10.5465/AMR.2002.7566108