Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity

Paul W. Beamish; Yamlaksira S Getachew

doi:10.1016/j.jwb.2021.101226

Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity

Paul W. Beamish
, Yamlaksira S Getachew

Research output: Contribution to journal › Article › peer-review

27 Citations (Scopus)

152 Downloads (Pure)

Abstract

This study seeks to advance a fine-grained understanding of the relationship between host-country institutions and foreign subsidiary survival by unbundling institutions into contracting and property rights institutions as well as engaging subsidiary-level heterogeneity. We argue that the adverse effects of weak contracting institutions are stronger for market-seeking subsidiaries. In contrast, we contend that weak property rights institutions are more detrimental to the survival of resource-seeking subsidiaries. Data from a longitudinal, paired-sample design of Japanese foreign subsidiaries operating across 46 countries provide support for these arguments. The results underscore the need to better understand institutional diversity as well as subsidiary heterogeneity.

Original language	English
Article number	101226
Journal	Journal of World Business
Volume	56
Issue number	4
Early online date	4 May 2021
DOIs	https://doi.org/10.1016/j.jwb.2021.101226
Publication status	Published (in print/issue) - 30 Jun 2021

Bibliographical note

Publisher Copyright:
© 2021 The Author(s)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Contracting institutions
Foreign subsidiary survival
Market seeking subsidiaries
Property rights institutions
Resource-seeking subsidiaries

Access to Document

10.1016/j.jwb.2021.101226Licence: CC BY-NC-ND

1-s2.0-S1090951621000389-mainFinal published version, 1.29 MBLicence: CC BY-NC-ND

Cite this

@article{85ffb4a6b9244aa18b11d90f70f0691f,

title = "Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity",

abstract = "This study seeks to advance a fine-grained understanding of the relationship between host-country institutions and foreign subsidiary survival by unbundling institutions into contracting and property rights institutions as well as engaging subsidiary-level heterogeneity. We argue that the adverse effects of weak contracting institutions are stronger for market-seeking subsidiaries. In contrast, we contend that weak property rights institutions are more detrimental to the survival of resource-seeking subsidiaries. Data from a longitudinal, paired-sample design of Japanese foreign subsidiaries operating across 46 countries provide support for these arguments. The results underscore the need to better understand institutional diversity as well as subsidiary heterogeneity.",

keywords = "Contracting institutions, Foreign subsidiary survival, Market seeking subsidiaries, Property rights institutions, Resource-seeking subsidiaries",

author = "Beamish, \{Paul W.\} and Getachew, \{Yamlaksira S\}",

note = "Publisher Copyright: {\textcopyright} 2021 The Author(s)",

year = "2021",

month = jun,

day = "30",

doi = "10.1016/j.jwb.2021.101226",

language = "English",

volume = "56",

journal = "Journal of World Business",

issn = "1090-9516",

publisher = "Elsevier Inc.",

number = "4",

}

TY - JOUR

T1 - Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity

AU - Beamish, Paul W.

AU - Getachew, Yamlaksira S

PY - 2021/6/30

Y1 - 2021/6/30

N2 - This study seeks to advance a fine-grained understanding of the relationship between host-country institutions and foreign subsidiary survival by unbundling institutions into contracting and property rights institutions as well as engaging subsidiary-level heterogeneity. We argue that the adverse effects of weak contracting institutions are stronger for market-seeking subsidiaries. In contrast, we contend that weak property rights institutions are more detrimental to the survival of resource-seeking subsidiaries. Data from a longitudinal, paired-sample design of Japanese foreign subsidiaries operating across 46 countries provide support for these arguments. The results underscore the need to better understand institutional diversity as well as subsidiary heterogeneity.

AB - This study seeks to advance a fine-grained understanding of the relationship between host-country institutions and foreign subsidiary survival by unbundling institutions into contracting and property rights institutions as well as engaging subsidiary-level heterogeneity. We argue that the adverse effects of weak contracting institutions are stronger for market-seeking subsidiaries. In contrast, we contend that weak property rights institutions are more detrimental to the survival of resource-seeking subsidiaries. Data from a longitudinal, paired-sample design of Japanese foreign subsidiaries operating across 46 countries provide support for these arguments. The results underscore the need to better understand institutional diversity as well as subsidiary heterogeneity.

KW - Contracting institutions

KW - Foreign subsidiary survival

KW - Market seeking subsidiaries

KW - Property rights institutions

KW - Resource-seeking subsidiaries

UR - https://www.scopus.com/pages/publications/85105348069

U2 - 10.1016/j.jwb.2021.101226

DO - 10.1016/j.jwb.2021.101226

M3 - Article

SN - 1090-9516

VL - 56

JO - Journal of World Business

JF - Journal of World Business

IS - 4

M1 - 101226

ER -

Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity

Abstract

Bibliographical note

UN SDGs

Keywords

Access to Document

Other files and links

Fingerprint

Cite this