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- Which country
matters?
Institutional
development
and foreign
affiliate
performance: Strategic
Management
Journal, Vol.
29, No. 11.
(2008), pp.
1179-1205.This
article
investigates
the effect of
the level of
institutional
development of
host countries
on the level
of and
variation in
foreign
affiliate
performance.
Institutional
development is
defined as the
extent to
which the
economic,
political, and
social
institutions
in a host
country are
developed and
are favorable
for foreign
affiliates. A
longitudinal
analysis of
over 30,000
foreign
affiliate-year
cases that
include 6,985
foreign
affiliates in
38 host
countries
between 1996
and 2001 shows
that foreign
affiliate
performance
varies
noticeably
both across
and within
host
countries. The
results
suggest that
the level of
institutional
development,
as determined
by the
Institutional
Development
Index (IDI), a
new
measurement
developed in
this study,
has a strong
negative
curvilinear
relationship
with the
variation in
foreign
affiliate
performance
and a negative
effect on the
level of
foreign
affiliate
performance.
The
implications
for future
research,
practice, and
policymaking
are discussed.
Copyright ©
2008 John
Wiley & Sons,
Ltd.Christine
Chan, Takehiko
Isobe, Shige
Makino
Source: Strategic Management Journal, Vol. 29, No. 11. (2008), pp. 1179-1205. - Google
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If you would like to find additional social bookmark based links on the topic of affiliate we recommend the Open Tag Directory > Affiliate. If you would like to find related tags we recommend Tag Patterns > Affiliate.
