Abstract: This study advances research on home-based institutions and international business studies by examining how the subnational institution shape emerging market firms' (EMFs) internationalization and how this relationship is contingent on firms' capability. Using survey data of 727 Chinese private enterprises in 31 provinces, we demonstrate that EMFs' home-based subnational institutions, in terms of government’s market orientation, product market development, and labor market development, have a positive effect on EMF’s internationalization. Also these relationships differ among EMFs with different market capabilities and nonmarket capabilities. These findings contribute to the international business research by highlighting the importance of subnational institutions and considering the firm-specific capabilities simultaneously in understanding EMFs’ international strategy.

Abstract: We advance FMA literature by bringing in the institutional context, a hitherto missing dimension. We identify two components of the institutional context - a country’s market orientation and a country’s cultural orientation towards uncertainty - which can help capturing its interplay with the FMA isolating mechanisms which protect first mover’s performance. We argue that market supporting institutions are detrimental for first mover’s performance and that uncertainty avoiding societies tend to favour first’s mover performance. We test our hypotheses in the context of the world telecommunication industry (40 countries, 136 firms, 20 years of data) and we find strong support for our hypotheses. We also draw empirical implications on the relative importance of a country’s market orientation and a country’s cultural orientation towards uncertainty in first mover’s performance.

Abstract: International business scholars have traditionally drawn on neo-institutional theory to explain the survival and growth of multinational corporations, stressing the importance of various isomorphic forces and influences. A new perspective has emerged in which the role of agency in effecting, transforming and maintaining institutions and organizational fields is emphasized. The objective of present paper is to explore how the internationalization process can be adopted as a strategic response to mitigate the institutional pressures from domestic environment with a specific reference to the case of Chinese MNCs. The findings of the unique ways that Chinese MNCs can react and develop new ‘rules of the game’ toward their societal organizations will enrich our understanding about the co-evolutionary process between MNCs and their institutional environment.

Abstract: How does the strength of domestic institutions affect small to mid-size enterprises (SMEs) that experience financial, economic, and political crises? We compare the survival and recovery rates of SMEs in China to those of in the US, Europe and Latin America. We argue that SMEs in countries that experience repeated shocks develop capabilities to compensate for the weaker institutional environments, whereas their counterparts in stronger institutional environments become more vulnerable when they fail to develop capabilities to deal with such shocks.