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Extending the literature on institutional voids, we introduce theory from law that highlights the ability of firms to choose the laws and enforcement mechanisms that govern their international joint ventures (IJVs). Specifically, firms may overcome institutional voids by borrowing institutions via binding international commercial arbitration (BICA) rather than relying on host-market institutions. Leveraging an institution-based view, we develop a theoretical framework to articulate the conditions under which IJV partners may choose BICA as opposed to domestic courts to overcome institutional voids in host markets.

Our commentary addresses three papers that we believe make important contributions to the emerging literature on entrepreneurial orientation (EO). The first paper rigorously assesses and enhances the construct validity of EO-an important antecedent to empirical research. The second paper draws on the concepts of identity and social identity and provides a means of predicting how various ownership types of family firms will affect the EO-performance relationship. The third paper synthesizes multiple theoretical perspectives and empirical research to provide insights on the role that EO plays in enhancing a firm's acquisitive and experimental learning. We close with a discussion of EO as an area for theory development. We would like to thank the editors of this ETP Special Issue-Jeff Covin and TomLumpkin-for inviting us to comment on these three fine papers on the emerging topic of Entrepreneurial Orientation (EO). Clearly, EO has generated a substantial literature (see Rauch, Wiklund, Lumpkin, & Frese [2009] for a recent meta-analysis) which has important implications for both normative and descriptive theory. In addition, empirical research and theory building in EO have encompassed a wide variety of substantive disciplines such as entrepreneurship, strategic management, organizational behavior, marketing, and operations. This stream includes a wide range of empirical research across many contexts such as small and publicly held family businesses, small firms, large corporations, as well as firms in both Western and non-Western contexts.

We show how the initial subnational entry location of foreign multinational enterprises (MNEs) in China influences their subsequent within-country location choices and expansion speed. We distinguish between MNEs that establish their first subsidiary in co-ethnic cores -dense agglomerations of other firms from the same country of origin -and MNEs that locate their first subsidiary in the periphery, i.e., outside of these co-ethnic cores. To identify co-ethnic cores in China, we employ a geo-visualization methodology, which draws the boundaries of cores organically and dynamically over time. We contrast our findings with the prevailing approach of using static administrative boundaries for identifying agglomerations. Our results provide evidence of path dependency, in that (a) entry through subnational locations with strong co-ethnic communities is followed by expansion into other locations where co-ethnic communities are present, and that (b) entry through co-ethnic communities accelerates the pace at which MNEs establish additional subsidiaries in China. We also find that co-ethnic community effects continue to influence within-country MNE activities over time, despite a host of economic, institutional, and investment developments.