G. Azar, G. Batsakis, Rian Drogendijk, A. Pakseresht, Ruoqi Geng
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Institutional distance and location choice: an experimental approach to the perception puzzle
PurposeIn this research, we designed and implemented a unique vignette experiment to study the effect of managers' perceptions of institutional distance on foreign location choice, as well as the moderating effect of managerial international experience and preferred entry mode on this relationship.Design/methodology/approachWe employ an experimental vignette methodology (EVM) approach applied in the context of Chinese managers to test the causal relationships depicted in our hypotheses. In this way, we measure the decision-makers' perceptions ex ante, i.e. in conjunction with and prior to a decision about a foreign location choice.FindingsOur findings show that managers' ex-ante perceptions of institutional distance negatively affect decisions on foreign location choice. Also, we find that managerial international experience and preference for high commitment entry modes mitigate the negative effect of managers' perceptions of institutional distance on foreign location choice.Originality/valueThis research study adds to our understanding of the effect of managers' perceptions of institutional distance and managerial contingencies on foreign location decisions. Further, it advances novel experimental design in international business research in general and on foreign location choice in particular.
期刊介绍:
International Marketing Review (IMR) is a journal that has, as its core remit, the goal of publishing research that pushes back the boundaries of international marketing knowledge. IMR does this by publishing novel research ideas, and by publishing papers that add substance to, question the basic assumptions of, reframe, or otherwise shape what we think we know within in the international marketing field. IMR is pluralistic, publishing papers that are conceptual, quantitative-empirical, or qualitative-empirical. At IMR, we aim to be a journal that recognizes great papers and great research ideas, and works hard with authors to nurture those ideas through to publication. We aim to be a journal that is proactive in developing the research agenda in international marketing, by identifying critical research issues, and promoting research within those areas. Finally, IMR is a journal that is comfortable exploring, and that fosters the exploration of, the interfaces and overlaps between international marketing and other business disciplines. Where no interfaces or overlaps exist, IMR will be a journal that is ready to create them. IMR’s definition of international marketing is purposefully broad and includes, although is not restricted to: -International market entry decisions and relationships; -Export marketing and supply chain issues; -International retailing; -International channel management; -Consumer ethnocentrism, country and product image and origin effects; -Cultural considerations in international marketing; -International marketing strategy; -Aspects of international marketing management such as international branding, advertising and new product development.