Local Density and Foreign Subsidiary Performance

Miller, Stewart R.; Eden, Lorraine

doi:10.5465/amj.2006.20786081

Cited by 226 publications

(201 citation statements)

References 59 publications

Supporting

Mentioning

196

Contrasting

Unclassified

Order By: Relevance

“…First, firms operating in foreign countries encounter unfamiliarity and discrimination costs associated with their foreign operations (Miller & Eden, 2006). Such costs are expected to be low if a host country has a well-established institutional environment in which foreign firms can easily follow 'the rules of the game' and gain information necessary for their operations (Schwens & Kabst, 2011).…”

Section: Firms' Prior Entry Experience and Host Country Institutionsmentioning

confidence: 99%

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

et al. 2014

View full text Add to dashboard Cite

This is the accepted version of the paper.This version of the publication may differ from the final published version. sub-sample analyses we identify differences between entering developed and developing host countries in terms of the impact of home country government support and quality of host country institutions. Our findings help explain the puzzle concerning why EE firms have rapidly internationalized in a short period of time and do not follow the pattern predicted by classical IB theories. In comparison with studies from developed country contexts, our findings also highlight that the effect of home country support may be context specific. Permanent repository link

show abstract

Section: Firms' Prior Entry Experience and Host Country Institutionsmentioning

confidence: 99%

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

et al. 2014

View full text Add to dashboard Cite

show abstract

“…Formal (or regulatory) institutional distance increases MNEs' costs associated with learning the 'rules of the game' (North 1990) of new environments. Such liabilities of foreignness (Zaheer 1995) are likely to act as sources of competitive disadvantage to MNEs (Eden and Miller 2004;Miller and Eden 2006). Although, in some industries, the increasing standardisation of practices has been argued to reduce the effect of cross-country institutional differences (Brunsson et al 2012;Larsen and Manning 2015), institutional distance has been argued to affect various important decisions such as MNEs' choice of location (Xu and Shenkar 2002), entry mode (Schwens et al 2011), and ownership strategy (Eden and Miller 2004), and it remains an important concept in the analysis of foreign subsidiaries' performance (Gaur and Lu 2007).…”

Section: Introductionmentioning

confidence: 99%

Institutional Distance and Foreign Subsidiary Performance in Emerging Markets: Moderating Effects of Ownership Strategy and Host-Country Experience

Shirodkar

Konara

2016

Manag Int Rev

View full text Add to dashboard Cite

Institutional distance has been known to be an important driver of Multinational Enterprises' strategies and performance in host countries. Based on a large panel dataset of 10,562 firms operating in 17 emerging markets and spanning 80 home countries, we re-examine the relationship described by Gaur and Lu (J Manage 33 (1): 2007) between regulatory institutional distance and subsidiary performance. We extend this research by (1) examining this relationship in the context of emerging markets, (2) examining the moderating effects of ownership strategy and host-country experience within the context of emerging markets and (3) accounting for a greater variety of institutions by including a large number of home and host countries. We find that institutional distance negatively affects subsidiary performance in emerging markets. Our findings also show that the negative effects of institutional distance on subsidiary performance are lesser for subsidiaries with partial ownership (than for subsidiaries with full ownership) and for subsidiaries with greater host-country experience. We discuss our findings with respect to Gaur and Lu's model, which explores the relationships between these variables in a general context.

show abstract

“…For example, Miller and Eden (2006) found that there was greater conformity with local competitors' strategies and structures when the competitive pressures were higher within the U.S. banking industry. Furthermore, Hillman and Wan (2005) reported that foreign subsidiaries in Western European economies, which are largely although not exclusively comprised of rule-based governance environments, tended to be isomorphic with the most competitive strategies and structures.…”

Section: Structural Design Options For Foreign Subsidiariesmentioning

confidence: 99%

Organization Design for Foreign Subsidiaries of Multinational Enterprises: A Contingency Perspective

Judge¹,

Li²

2012

IJBM

View full text Add to dashboard Cite

There has been considerable research suggesting ways to design foreign subsidiaries for multinational enterprises. Unfortunately, much of this research is fragmented and some is even contradictory. This study seeks to comprehensively integrate this research stream by distilling the extant literature around two key contingency factors: (1) governance environment of the host country, and (2) the strategic role of the foreign subsidiary. Specifically, we distilled the multi-national organizational design literature using the institutional economics logic coupled with Galbraith's classic organizational design framework. This approach yielded twelve new theoretical propositions that better integrates previous theory and research around the four dimensions of organizational design. The end result is a clearer and more comprehensive understanding of what we know about organizational design in foreign subsidiaries, the novel consideration of governance environment surrounding the subsidiary as an important contingency factor, and guidance for future research in this important area.

show abstract

Local Density and Foreign Subsidiary Performance

Cited by 226 publications

References 59 publications

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

Institutional Distance and Foreign Subsidiary Performance in Emerging Markets: Moderating Effects of Ownership Strategy and Host-Country Experience

Organization Design for Foreign Subsidiaries of Multinational Enterprises: A Contingency Perspective

Contact Info

Product

Resources

About