Institutional Distance in International Business Research

ADVANCES IN INTERNATIONAL MANAGEMENT: THE PAST, PRESENT AND FUTURE OF INTERNATIONAL BUSINESS AND MANAGEMENT, Volume 23, Devinney, T.M., Pedersen, T., Tihanyi, L., eds., New York, NY: Emerald, 2010

37 Pages Posted: 17 Apr 2010

See all articles by Jin-Hyun Bae

Jin-Hyun Bae

New York University (NYU) - Department of Management and Organizational Behavior

Robert M. Salomon

New York University (NYU) - Department of Management and Organizational Behavior

Date Written: 2010

Abstract

Understanding institutional distance, i.e. the difference in institutional context between countries, is critical for firms whose operations span national boundaries. Institutional distance impacts the relative attractiveness of country markets, trade-offs among foreign market entry strategies, the management of subsidiaries abroad, and ultimately, firm performance. Although scholars in various disciplines have made great advances in defining and measuring the institutional characteristics of nations, we contend that many of these advances have occurred in a parallel fashion. Moreover, extant empirical studies focus disproportionately on the impact of different subsets of the identified institutional characteristics. We suggest that it is time to find common ground across the disparate literatures. Doing so would allow us to view differences in institutional contexts more holistically, and refine our understanding of their implications for multinational corporations.

Keywords: Institutional distance, Cultural distance, Economic distance, Political distance, Regulatory distance, International expansion, International management

Suggested Citation

Bae, Jin-Hyun and Salomon, Robert M., Institutional Distance in International Business Research (2010). ADVANCES IN INTERNATIONAL MANAGEMENT: THE PAST, PRESENT AND FUTURE OF INTERNATIONAL BUSINESS AND MANAGEMENT, Volume 23, Devinney, T.M., Pedersen, T., Tihanyi, L., eds., New York, NY: Emerald, 2010, Available at SSRN: https://ssrn.com/abstract=1591129

Jin-Hyun Bae (Contact Author)

New York University (NYU) - Department of Management and Organizational Behavior ( email )

44 West 4th Street
New York, NY 10012
United States

Robert M. Salomon

New York University (NYU) - Department of Management and Organizational Behavior ( email )

44 West 4th Street
New York, NY 10012
United States

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