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

26 Pages Posted: 13 Oct 2009

See all articles by Saul Estrin

Saul Estrin

London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Delia Baghdasaryan

affiliation not provided to SSRN

Klaus E. Meyer

China Europe International Business School (CEIBS); Copenhagen Business School - Center for East European Studies (CEES)

Abstract

‘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.

Suggested Citation

Estrin, Saul and Baghdasaryan, Delia and Meyer, Klaus E., The Impact of Institutional and Human Resource Distance on International Entry Strategies. Journal of Management Studies, Vol. 46, Issue 7, pp. 1171-1196, November 2009. Available at SSRN: https://ssrn.com/abstract=1486887 or http://dx.doi.org/10.1111/j.1467-6486.2009.00838.x

Saul Estrin (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Delia Baghdasaryan

affiliation not provided to SSRN

No Address Available

Klaus E. Meyer

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

HOME PAGE: http://www.ceibs.edu/faculty/facultylist/09/100132.shtml

Copenhagen Business School - Center for East European Studies (CEES) ( email )

Porcelanshaven 24
2000 Frederiksberg
Denmark

HOME PAGE: http://www.klausmeyer.co.uk

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