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...

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...

An important step in the internationalization process of emerging economy firms is the shift from exports to foreign direct investment (FDI). We integrate the resource- and institution-based views to suggest that firms that can use unique institutional advantages are more likely to make this...

We review the literature analyzing the impact of pro-market institutions on firms' global strategy. We propose that the ideological tension between whether the government or the market should drive economic development results in a pendulum of pro-market reforms and reversals that drive changes...

According to the springboard perspective, emerging market multinationals (EMNE) seek strategic assets aggressively from the outset. In this paper, we investigate the role of firms' institutional embeddedness in terms of age and affiliation to business group on their aggressive...