Institutional Open Access at Home and Outward Internationalization

Journal of World Business, Forthcoming

41 Pages Posted: 5 Apr 2014

See all articles by Sunny Li Sun

Sunny Li Sun

Mike W. Peng

University of Texas at Dallas - Naveen Jindal School of Management

Ruby Lee

Florida State University

Weiqiang Tan

Education University of Hong Kong; The Education University of Hong Kong

Date Written: April 4, 2010

Abstract

While voluminous research has focused on the impact of host country institutions on foreign entrants, the rise of outward internationalization of firms from emerging economies is challenging this research stream. Limited work has been done to investigate a crucial question: How do home country institutions influence firms from emerging economies to engage in outward internationalization? Inspired by North’s insights on institutional open access, we develop an institution-based framework highlighting intra-country (sub-national) regional differences within a large emerging economy. Specifically, we argue that greater institutional open access in a particular region of a home country — in the areas of legal environment openness and financial market openness — leads to greater outward internationalization of local firms headquartered in that region. Further, tenure of that region’s governor moderates such relationships in different ways. Our multilevel analysis with 5,239 observations (company-years) finds that institutional open access is indeed behind some Chinese firms’ outward internationalization.

Keywords: Institutional open access, internationalization, institutional transitions, institution-based view

JEL Classification: O17, K40

Suggested Citation

Sun, Sunny Li and Peng, Mike W. and Lee, Ruby P. and Tan, Weiqiang and Tan, Weiqiang, Institutional Open Access at Home and Outward Internationalization (April 4, 2010). Journal of World Business, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2420493

Mike W. Peng

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Ruby P. Lee

Florida State University ( email )

United States

Weiqiang Tan

Education University of Hong Kong ( email )

Dept of Social Sciences
Education University of Hong Kong
Tai Po, NT 11111
Hong Kong

The Education University of Hong Kong ( email )

Tai Po
Hong Kong
Hong Kong

No contact information is available for Sunny Li Sun

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
64
Abstract Views
773
rank
427,401
PlumX Metrics