We extend internalization theory by examining the contingencies associated with market internalization and its impact on foreign subsidiary survival. Based on a sample of 6170 subsidiary-year observations in 63 countries belonging to 292 MNCs from Korea during 1995 to 2013, we find that greater...

This study examines how emerging economy firms pursue growth in the domestic market during pro-market reforms. Grounding in the literature on institutional perspective on strategic adaptation during institutional transition, we propose an inverted U-shaped relationship between pro-market reforms...

Drawing from the notion of cultural friction and based on the agency theory rationalization of multinational enterprise (MNE) headquarter–subsidiary relationship, we examine the impact of cultural friction in foreign subsidiaries on subsidiary performance. We argue that cultural friction,...

Operating in the home country provides firms with substantial experience and learning opportunities. Emerging market economies provide a rich context in terms of diversity of sub-national institutions, competitors, consumers, and business networks. Operating in such context enables EMNEs to...