Department of Management

Domestic Acquisition Experience and the Internationalization of Chinese Firms: The Role of Institutional Heterogeneity

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Standard

Domestic Acquisition Experience and the Internationalization of Chinese Firms: The Role of Institutional Heterogeneity. / Muratova, Yulia.

In: Management and Organization Review, Vol. 14, No. 4, 2018, p. 693-714.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

APA

CBE

MLA

Vancouver

Author

Bibtex

@article{14c82abb2ad8483087ca1a3f41230d0c,
title = "Domestic Acquisition Experience and the Internationalization of Chinese Firms: The Role of Institutional Heterogeneity",
abstract = "The liability of foreignness increases firm risk of doing business abroad. However, it appears not to deter Chinese firms as evidenced by their risky internationalization pattern. This study is concerned with explaining this phenomenon. Drawing on organizational learning and institutional theories, I argue that institutional heterogeneity in China gives firms an opportunity to develop routines to overcome the liability of foreignness through acquisition experience gained outside of their home provinces. Further, I propose that coastal and inland firms draw different routines from their acquisition experiences. I test these arguments on panel data of listed Chinese firms, tracing their acquisition behavior from 2006 to 2015. My analyses suggest that acquisition experience outside of home province matters and that, in the case of inland firms, coastal acquisition experience facilitates subsequent internationalization. The present study contributes to the literature on the internationalization of Chinese firms. It highlights the value of context-specific measures for Chinese management research, sheds light on the functionality of institutional heterogeneity in China, and provides evidence to re-evaluate the riskiness of Chinese firms' internationalization pattern.",
keywords = "China, DETERMINANTS, ECONOMIC TRANSITION, ENTERPRISES, ENTREPRENEURSHIP, FDI, FOREIGNNESS, INTEGRATION, LOCATION, MULTINATIONALS, PERFORMANCE, acquisitions, institutional heterogeneity, internationalization, liability of foreignness",
author = "Yulia Muratova",
year = "2018",
doi = "10.1017/mor.2018.37",
language = "English",
volume = "14",
pages = "693--714",
journal = "Management and Organization Review",
issn = "1740-8776",
publisher = "Wiley",
number = "4",

}

RIS

TY - JOUR

T1 - Domestic Acquisition Experience and the Internationalization of Chinese Firms: The Role of Institutional Heterogeneity

AU - Muratova, Yulia

PY - 2018

Y1 - 2018

N2 - The liability of foreignness increases firm risk of doing business abroad. However, it appears not to deter Chinese firms as evidenced by their risky internationalization pattern. This study is concerned with explaining this phenomenon. Drawing on organizational learning and institutional theories, I argue that institutional heterogeneity in China gives firms an opportunity to develop routines to overcome the liability of foreignness through acquisition experience gained outside of their home provinces. Further, I propose that coastal and inland firms draw different routines from their acquisition experiences. I test these arguments on panel data of listed Chinese firms, tracing their acquisition behavior from 2006 to 2015. My analyses suggest that acquisition experience outside of home province matters and that, in the case of inland firms, coastal acquisition experience facilitates subsequent internationalization. The present study contributes to the literature on the internationalization of Chinese firms. It highlights the value of context-specific measures for Chinese management research, sheds light on the functionality of institutional heterogeneity in China, and provides evidence to re-evaluate the riskiness of Chinese firms' internationalization pattern.

AB - The liability of foreignness increases firm risk of doing business abroad. However, it appears not to deter Chinese firms as evidenced by their risky internationalization pattern. This study is concerned with explaining this phenomenon. Drawing on organizational learning and institutional theories, I argue that institutional heterogeneity in China gives firms an opportunity to develop routines to overcome the liability of foreignness through acquisition experience gained outside of their home provinces. Further, I propose that coastal and inland firms draw different routines from their acquisition experiences. I test these arguments on panel data of listed Chinese firms, tracing their acquisition behavior from 2006 to 2015. My analyses suggest that acquisition experience outside of home province matters and that, in the case of inland firms, coastal acquisition experience facilitates subsequent internationalization. The present study contributes to the literature on the internationalization of Chinese firms. It highlights the value of context-specific measures for Chinese management research, sheds light on the functionality of institutional heterogeneity in China, and provides evidence to re-evaluate the riskiness of Chinese firms' internationalization pattern.

KW - China

KW - DETERMINANTS

KW - ECONOMIC TRANSITION

KW - ENTERPRISES

KW - ENTREPRENEURSHIP

KW - FDI

KW - FOREIGNNESS

KW - INTEGRATION

KW - LOCATION

KW - MULTINATIONALS

KW - PERFORMANCE

KW - acquisitions

KW - institutional heterogeneity

KW - internationalization

KW - liability of foreignness

UR - http://www.scopus.com/inward/record.url?scp=85061790892&partnerID=8YFLogxK

U2 - 10.1017/mor.2018.37

DO - 10.1017/mor.2018.37

M3 - Journal article

VL - 14

SP - 693

EP - 714

JO - Management and Organization Review

JF - Management and Organization Review

SN - 1740-8776

IS - 4

ER -