Journal
MANAGEMENT AND ORGANIZATION REVIEW
Volume 12, Issue 1, Pages 103-133Publisher
CAMBRIDGE UNIV PRESS
DOI: 10.1017/mor.2015.40
Keywords
China; formal institutions; institution-based view; internationalization; political connections; resource dependence theory
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Funding
- Chinese National Science Funds [71202061, 71572160, 71072053]
- Key Project of Key Research Institute of Humanities and Social Science in the Ministry of Education [13JJD790027]
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This study draws on the resource dependence theory and institution-based view to examine political connections in the home market and home formal institutions for their impact on the internationalization of emerging market firms in the context of China. The results suggest that political connections at home may prevent emerging market firms from implementing internationalization strategies by reducing the dependence constraints imposed by local governments and foreign firms, whereas home formal institutional development may promote the strategy transition of emerging market firms from building political connections to international expansion and also reduce the negative impact of political connections. Overall, our findings indicate that political connections and formal institutions at home play an important role in shaping emerging market firms' strategies of outward internationalization.
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