Raising or folding the bet? Institutional dynamics, family involvement, and the mixed gamble of internationalization

Recognizing that developing economies experience various speeds of reforms and reversals, we investigate how such dynamic institutional changes influence whether firms continue expanding or begin receding from abroad, after having already internationalized. In so doing, we extend the mixed gamble pe...

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Bibliographic Details
Published in:Thunderbird international business review 2022-07, Vol.64 (4), p.301-315
Main Authors: Banalieva, Elitsa R., Eddleston, Kimberly A., Jiang, Joy Ruihua, Santoro, Michael D.
Format: Article
Language:English
Subjects:
change in internationalization scale
China
Companies
developing economies
dynamic institution‐based view
Families & family life
family involvement
Globalization
Institutional change
mixed gamble of internationalization
Reforms
speed of reforms
speed of reversals
Wealth
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Summary:Recognizing that developing economies experience various speeds of reforms and reversals, we investigate how such dynamic institutional changes influence whether firms continue expanding or begin receding from abroad, after having already internationalized. In so doing, we extend the mixed gamble perspective by showing how external institutions impact firms' mixed gamble calculus, and especially that of family versus nonfamily firms. As a result of firms' assessment of potential gains and losses in current versus prospective wealth, the speed of reforms increases while the speed of reversals decreases firms' internationalization scale. These asymmetric effects are further attenuated for firms with higher levels of family involvement.
ISSN:1096-4762
1520-6874
DOI:10.1002/tie.22275