The Impact of Institutional and Human Resource Distance on International Entry Strategies

‘Distance’ between organizational contexts has been a prime concern of scholarly research into international business strategies. We extend this research by exploring the complementary roles of institutional and human resource distances on foreign investors' entry strategies. Combining institut...

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Bibliographic Details
Published in:Journal of management studies 2009-11, Vol.46 (7), p.1171-1196
Main Authors: Estrin, Saul, Baghdasaryan, Delia, Meyer, Klaus E.
Format: Article
Language:English
Subjects:
Business community
Business strategies
Emerging markets
Foreign direct investment
Foreign investment
Human resources
Impact analysis
Institutions
International investment
Market entry
Market strategy
Studies
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Summary:‘Distance’ between organizational contexts has been a prime concern of scholarly research into international business strategies. We extend this research by exploring the complementary roles of institutional and human resource distances on foreign investors' entry strategies. Combining institutional and resource‐based theories suggests that: (1) human resource differences complement institutional differences; (2) the effects of some aspects of distance are curvilinear; and (3) the impact of distance differs between first and subsequent entries. We find empirical support for these arguments on a unique dataset of foreign direct investment in six emerging economies that incorporates multiple host as well as multiple home countries.
ISSN:0022-2380
1467-6486
DOI:10.1111/j.1467-6486.2009.00838.x