Open AccessThe Institutionalization of Political Risk Assessment by Chinese Multinational Firms
Author(s) -
Ilan Alon,
Alfredo Jiménez,
Liu Hui,
Hua Wang
Publication year - 2021
Publication title -
management international
Language(s) - English
Resource type - Journals
eISSN - 1918-9222
pISSN - 1206-1697
DOI - 10.7202/1077433ar
Subject(s) - internationalization , institutionalisation , multinational corporation , political risk , politics , business , scope (computer science) , scale (ratio) , economic system , market economy , economics , political science , international trade , finance , physics , quantum mechanics , computer science , law , programming language
Some researchers have claimed that Chinese firms are impervious to political risk, calling into question the institutionalization of political risk by Chinese firms. Building on resource dependence theory and the literature on non-market strategies, this study finds significant impact by ownership structure, firm scale, and the degree of internationalization on the institutionalization of political risk assessments (IPRA) by Chinese firms. As such, state-owned firms and larger firms cultivate a higher level of IPRA. We find a positive impact of a firm’s scale and scope of internationalization, but insignificant impact of depth of internationalization.