Overcoming institutional voids in the home country for internationalization: an exploratory examination of institutional strategies of Indian MNEs

Q1 Social Sciences

Transnational Corporations Pub Date : 2021-12-22 DOI:10.18356/2076099x-28-3-4

Rishika Nayyara, Rajdeepa Maityb

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引用次数: 2

Abstract

This study draws upon the institution-based view to examine the role of market and non-market institutional strategies of multinational enterprises from emerging markets (EMNEs) in shaping their decisions on outward foreign direct investment (OFDI) (decision to engage in OFDI and volume of investment). The proposed conceptual framework is tested on the OFDI decisions of listed Indian firms during the period 2008–2018. The results of random effects logistic regression and tobit regression provide robust evidence for the positive impact of institutional substitution and institutional signaling strategy on the decision to engage in OFDI as well as the volume of investment. An institutional borrowing strategy affects only the decision to engage in OFDI, whereas an internalization strategy does not help EMNEs while internationalizing. The study contributes to the literature on institutional voids and institutional escapism by identifying the strategies that facilitate overseas expansion. It adds to the EMNE literature, which has focused lately on explaining the role of non-market strategies in internationalization. The results of the study indicate the need for policy initiatives geared towards filling information voids, strengthening legal systems and development of credit markets.

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克服母国国际化的制度空白:印度跨国公司制度战略的探索性考察

本研究利用基于制度的观点来考察新兴市场跨国企业(EMNEs)的市场和非市场制度战略在塑造其对外直接投资(OFDI)决策(参与OFDI和投资额的决定)中的作用。本文以2008-2018年期间印度上市公司的对外直接投资决策为例，对所提出的概念框架进行了检验。随机效应logistic回归和tobit回归的结果为制度替代和制度信号策略对对外直接投资决策和投资规模的积极影响提供了有力的证据。机构借贷战略只影响从事对外直接投资的决定，而内部化战略在国际化过程中对EMNEs没有帮助。该研究通过识别促进海外扩张的策略，对制度空洞和制度逃避主义的文献有所贡献。它补充了新兴市场经济文献，这些文献最近集中于解释非市场战略在国际化中的作用。研究结果表明，需要采取旨在填补信息空白、加强法律制度和发展信贷市场的政策举措。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Transnational Corporations Social Sciences-Political Science and International Relations

CiteScore

4.50

自引率

0.00%

发文量

期刊介绍： Transnational Corporations is a double-blind refereed journal published three times a year by UNCTAD. Its basic objective is to publish policy-oriented articles and research notes that provide insights into the economic, legal, social and cultural impacts of transnational corporations and foreign direct investment in an increasingly global economy and the policy implications that arise therefrom. It focuses especially on political and economic issues related to transnational corporations.