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The Impact of Institutional and Human Resource Distance on International Entry Strategies
Author(s) -
Estrin Saul,
Baghdasaryan Delia,
Meyer Klaus E.
Publication year - 2009
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.2009.00838.x
Subject(s) - resource (disambiguation) , prime (order theory) , business , economic geography , foreign direct investment , international business , complement (music) , empirical research , institutional theory , human resources , industrial organization , economics , computer science , management , computer network , biochemistry , chemistry , philosophy , mathematics , epistemology , combinatorics , complementation , gene , macroeconomics , phenotype
abstract ‘Distance’ between organizational contexts has been a prime concern of scholarly research into international business strategies. We extend this research by exploring the complementary roles of institutional and human resource distances on foreign investors' entry strategies. Combining institutional and resource‐based theories suggests that: (1) human resource differences complement institutional differences; (2) the effects of some aspects of distance are curvilinear; and (3) the impact of distance differs between first and subsequent entries. We find empirical support for these arguments on a unique dataset of foreign direct investment in six emerging economies that incorporates multiple host as well as multiple home countries.