Institutional Distance and MNE‐subsidiary Initiative Collaboration: The Role of Dual Embeddedness

2021 ◽  
Author(s):  
Muhammad Mustafa Raziq ◽  
Gabriel R.G. Benito ◽  
Mansoor Ahmad
Keyword(s):  
Institutional Distance ◽  
Mne Subsidiary

Cross-national Distance: Concepts, Measures and Relationships

2012 ◽  
Vol 13 (2) ◽  
pp. 37-59
Author(s):  
Karen Newman
Keyword(s):  
International Business ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Business Practices ◽  
Psychic Distance ◽  
Business Decisions ◽  
Competing Models ◽  
Objective Indicators ◽  
Cross National

Cross-national distances between national cultures and national institutions have been studied extensively in the last two decades, particularly with respect to their effects on the conduct of international business. Yet varying levels of analysis, inconsistent definitions, and different operationalizations of cross-national distances inhibit theoretical and empirical advances. Three approaches to non-geographic cross-national distance permeate the literature: psychic distance, national cultural distance, and institutional distance. The meaning of psychic distance has become muddied by evolving operationalizations, from objective indicators to individual perceptions. National cultural distance has been confused with both psychic distance and institutional distance. Various and inconsistent institutional arrangements and business practices are used as measures of institutional distance. This article reviews overlaps, inconsistencies, and ambiguities in the definitions and measurements of psychic, national cultural and institutional distance; suggests a way to rationalize the three constructs; and offers two competing models to explain the role of all three distances in international business decisions.

Economic freedom reform: does culture matter?

2021 ◽  
pp. 1-19
Author(s):  
Nicholas Moellman ◽  
Danko Tarabar
Keyword(s):  
Economic Freedom ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Long Run

Abstract We analyse the role of culture in economic freedom reform and dispersion in an unbalanced panel of up to 80 countries, and in dyadic models with up to 3,003 unique country pairs. We find that a sense of individualism strengthens the effectiveness of democracy in promoting economic freedom within countries over 1950–2015, and that institutional distance between countries increases in their cultural distance, suggesting an important role of culture in determining long-run institutional equilibria. Our results are robust to a large variety of socio-economic controls, measures of institutions and measures of bilateral geographic, economic and demographic distances.

Institutional, Industry and Power Effects on Integration in Cross-border Acquisitions

2010 ◽  
Vol 31 (8) ◽  
pp. 1099-1127 ◽  
Author(s):  
Monia Mtar
Keyword(s):  
Institutional Theory ◽  
Market Structure ◽  
Multinational Firms ◽  
Institutional Distance ◽  
Target Firm ◽  
Country Level ◽  
Acquisition Integration ◽  
Complex Relationships ◽  
The Uk

Drawing on comparative institutional theory, this paper examines post-acquisition integration in international acquisitions, which has seldom been examined through this perspective. Based on a longitudinal and comparative study of three blue-chip French acquirers in the UK that shared similar integration intentions but realized those to varying degrees, this paper theorizes this variation in integration outcomes as a dynamic interplay of institutional distance, market structure and power dependencies. Whilst all important, those effects do not equally explain integration outcomes and can only be understood in conjunction with one another. Thus, contrary to a core assumption of institutional theory that institutional distance is consistently a dominant influence on multinational firms’ behaviour, the study shows that its effect is varied. It will only become extremely constraining when the market structure is highly localized, and both dynamics combine to make the acquirer largely dependent on the target firm. The study’s first contribution is to provide a fuller conceptual understanding of post-acquisition integration. Secondly, it introduces the role of market structure into a politico-institutional framework and, thirdly, it demonstrates complex relationships among three effects located at multiple levels. The results have important implications for the debate about environmental determinism vs multinationals’ agency at host-country level.

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