More policy is not always effective policy: How policy coherence affects firm internationalization

Utesch-Xiong, Fredrik; Leymann, Gunnar; Lundan, Sarianna M.

doi:10.1016/j.ibusrev.2022.102082

Cited by 1 publication

(1 citation statement)

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“…Policy coherence refers to “the ambiguity, complexity, and dynamism that is introduced by policy change” (Utesch-Xiong et al , 2022) and may influence internationalization decision due to unclear regulations (ambiguity), increased instruments through which policies are implemented (complexity) or increased scope of government intervention (dynamism). In most presidential democracies, presidents are formally authorized to introduce bills, which makes them primary lawmakers (Mainwaring and Shugar, 2002).…”

Section: Discussionmentioning

confidence: 99%

Effect of populism on the internationalization of emerging market firms

Alcaraz,

Martinez-Suarez,

Montoya

2023

EBR

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Purpose This paper aims to determine whether policy uncertainty caused by institutional decay in countries with populist rulers influences the internationalization decision of emerging market firms (EMFs). Design/methodology/approach The study used binary logit analysis on firms from Latin American countries undertaking cross-border greenfield investment projects. Findings The results suggest that internationalization decision is demotivated by policy uncertainty generated by populist chief executives and promoted by that of political parties. Originality/value This study uses populist rhetoric to describe policy uncertainty due to chief executives and ruling parties, which influences internationalization decision by increasing anticipated transaction costs. This inquiry identifies populism as a variable that influences EMFs to internationalize, while empirically testing the claim of theoretical scholarship that populism reconfigured the sociopolitical and institutional forces that shape the world’s business. This study further advances institutional theory by offering a fresh perspective on the influence of home instead of host-country institutions on the internationalization motivation of firms due to institutional decay caused by populist regimes.

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Section: Discussionmentioning

confidence: 99%