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The institutional context of firm internationalization has become increasingly important to research and practice. Institutional influence and effects are well documented across diverse aspects of firm internationalization. However, less is known about the reciprocal interplay of relationships between institutions and internationalization, and how this may spur their asymmetric co-evolution over time – as differentially influenced by highly varying forces and factors. We contribute to the literature by unpacking these relationships, introducing a model with propositions to account for the simultaneous interactions of institutions and internationalization leading to asymmetric co-evolution over time, and by extending unique theoretical support for the co-evolution process.

Bounded Entanglement: The Asymmetric Co-evolution of Institutions and Internationalization Research and Practice