Does subnational region matter? Foreign affiliate performance in the United states and China

Chan, Christine M.; Makino, Shige; Isobe, Takehiko

doi:10.1002/smj.854

Cited by 355 publications

(337 citation statements)

References 106 publications

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“…Many formal regulative institutions formulated by central or federal governments are eventually interpreted and implemented by subnational government agencies. The subnational differences in the endowments of resources, culture, and historical legacy also lead to variations in institutions (Chan et al, 2010;Kirkman et al, 2017;Ma et al, 2013a). In particular, subnational heterogeneity in government intervention and legislative environment widely exists in emerging markets (Chan et al, 2010;Ma, Tong, & Fitza, 2013b;World Bank, 2016).…”

Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

“…The subnational differences in the endowments of resources, culture, and historical legacy also lead to variations in institutions (Chan et al, 2010;Kirkman et al, 2017;Ma et al, 2013a). In particular, subnational heterogeneity in government intervention and legislative environment widely exists in emerging markets (Chan et al, 2010;Ma, Tong, & Fitza, 2013b;World Bank, 2016). Managers need to calculate the benefits and costs associated with subnational locations (Ma et al, 2013a).…”

Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

“…Dependent variable: profitability We measured profitability with firm-level rather than export project-level return on sales (ROS), which is calculated by net profit divided by total sales (Boehe et al, 2016;Chan et al, 2010), for the following reasons. First, export expansion speed fundamentally reshapes the organizational routines of INVs that usually internationalize early and rapidly.…”

Section: Variablesmentioning

confidence: 99%

“…Most countries in the world exhibit a certain degree of regional variations in institutions (Chan, Makino, & Isobe, 2010). For example, in Mexico, it took only two days to register a property transfer in Colima, but it took 74 days in Mexico City in 2013 (World Bank, 2016, p. 23).…”

Section: Introductionmentioning

confidence: 99%

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Rapid expansion of international new ventures across institutional distance

2018

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Rapid export expansion into institutionally distant locations has become more possible in the era of digital economy. Will such rapid expansion bring desirable outcome to firms? In a context of international new ventures (INVs) from emerging markets, we reconceptualize export expansion speed as the pace of exporting across institutional distance over a certain period of time. We then examine the relationship between rapid export expansion across institutional distance and overall firm performance. We incorporate directionality into export expansion and hypothesize the relationship to be positive when INVs export upwardly to more open countries, yet the relationship to be negative when INVs export downwardly to less open countries. We also hypothesize that the degree of market liberalization in subnational regions of origin of the INVs moderates the above speed-performance relationships. Instrumental variable models based on data of Chinese indigenous INVs during 2000-2009 support these hypotheses. This study both zooms in and zooms out the analytical lens along the location-related institutional axis, examines the joint effect of institutions involved in supranational directions and subnational origins on firm performance, and advances institutional theory.

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Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

Section: Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Rapid expansion of international new ventures across institutional distance

2018

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“…For example, provincial governments have policy-making authority in spending on strategic assets, public finance, tax exemptions and subsidies (Chan, Makino & Isobe, 2010). In regions where government interference in business activities or regulatory uncertainty is high, non-market forces prevail and there is a lack of effective contract enforcement, which increases business costs and reduces the competitiveness of the local firms (Boisot & Meyer, 2008).…”

Section: Institutional Theory (It)mentioning

confidence: 99%

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

Wei¹,

Zheng²,

Liu³

et al. 2014

International Business Review

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This research examines the factors determining whether or not exporting firms expand to outward foreign direct investment (OFDI) as part of their internationalisation strategy, using a recent survey of Chinese private-owned enterprises. We carry out a multidimensional analysis to investigate the impact of firm productivity, internal resources and the external environment on OFDI decisions, including both the decision to undertake OFDI and the volume of OFDI flows. It is found that productivity, technology-based capability, export experience, industry entry barriers, subnational institutions and intermediary institutional support affect firms' OFDI decisions. The findings have important policy and managerial implications.Key words: OFDI, Chinese private-owned enterprises, productivity, heterogeneity theory, the integrated 'strategic tripod' framework. 1 We are grateful for the valuable comments and suggestions of three referees. 2 We thank one of the referees for suggesting the term 'entry mode transformation'.

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Monitoring effect of transparency: How does government environmental disclosure facilitate corporate environmentalism?

et al. 2019

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Environmental information transparency is a key policy instrument in environmental governance, which has been emphasized in most of the literature. Although a large body of research has focused on its role at the national or industrial level in the developed countries, few studies have extended it to emerging economies and tested its role in the subnational context. In this paper, we have empirically examined how government environmental disclosure shapes corporate environmentalism in the context of China. It is argued that the information transparency of government environmental disclosure can promote corporate environmentalism by providing supports for governments' decision‐making of environmental governance, the activeness of environmental nongovernment organizations, and the participation of general public in environmental issues. Especially, we have highlighted two kinds of influences on focal relationship: booster role of bureaucratic capability in the diffusion of environmental institutional pressure and receiver role of organization slack and industrial competition in the perception of environmental institutional pressure. Using a panel dataset of Chinese publicly listed firms from 2008 to 2015, a positive relationship between government's environmental information transparency and corporate environmentalism is found. In addition, our result has shown that this relationship will be stronger for regions where government bureaucracy capabilities are stronger. This study contributes to understanding of the process of firms' strategic choice facing environmental and institutional changes in emerging economies.

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Does subnational region matter? Foreign affiliate performance in the United states and China

Cited by 355 publications

References 106 publications

Rapid expansion of international new ventures across institutional distance

Rapid expansion of international new ventures across institutional distance

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

Monitoring effect of transparency: How does government environmental disclosure facilitate corporate environmentalism?

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