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This paper develops the institutional perspective of foreign direct investment strategy. The main proposition is that an multinational corporation's (MNC) decision regarding foreign subsidiary ownership structure represents its desire to gain external and internal organizational legitimacy. In an empirical setting of Japanese MNCs' foreign investments across the world over the period 1987-1999, I found supporting evidence for my main argument. [ABSTRACT FROM AUTHOR]

This study examined the three key determinants of global strategic alliance survival. Global strategic alliances have suffered from high termination rate which has drawn researchers' attention to unveil the alliance survival phenomena. However, the research on why some global strategic alliances survive longer than others remains fragmented. The lack of the systematic accumulation of past research efforts calls for the need of integrative and theoretical framework for the analysis of global strategic alliance survival. In response to this call, this study developed the integrative model that incorporated the strategic, cultural, and social aspects of global strategic alliance survival; and empirically examined the impact of the three key survival determinants (i.e., interdependence from the strategic aspect, cultural congruence from the cultural aspect, and social connectedness between alliance partners from the social aspect) on the survival of global strategic alliances. Event history analysis was used to test the hypotheses in a sample of 487 manufacturing global strategic alliances which involved one or more Japanese firms in Asia, North America, and Europe. The results showed that interdependence had more pivotal effects on the global strategic alliance survival than the cultural congruence and social connectedness between alliance partners. Finally, the findings provided several suggestions for future theory development and managerial implications for strategic decision making. [ABSTRACT FROM AUTHOR]

This article examines how acquirers' home country institutions influences firms choice of control in cross-border acquisitions (CBAs). Drawing on the institutional theory, we argue that home country institutional development affects the exogenous and endogenous risks in CBAs. Economic institution development mitigated acquirers' internal moral hazard problem and provide external information and resources for domestic firms, prompting them to opt for a full control. Political institution development on the one hand reduce the expropriation risk acquirer may face in their home country and increases the likelihood of full acquisition; at the same time, political institution development constrains governments' direct involvement in firms' overseas investment through resource and policy support. We argue that the cost and benefit trade-off of full vs partial ownership varies at different levels of political institution development. Accordingly, we propose a curvilinear, inverted U- shaped relationship between political institution development and ownership sought in CBAs. [ABSTRACT FROM AUTHOR]

By drawing insights from both theories of regionalization and institutional economics, this study regards the subnational cluster, consisting of geographically proximate subnational regions, as an important within-country geographical boundary. This study examines how between- and within-subnational-cluster differences in formal institutions (i.e., institutional development and institutional imbalance) affect foreign affiliate performance. We argue that foreign affiliate performance varies between subnational clusters because different development and imbalance levels of formal institutions at the subnational cluster level both reflect different favorability and stability of institutional environments. We also argue that foreign affiliate performance varies within a subnational cluster because different relative development and imbalance levels of formal institutions at the subnational state level both reflect different positions of the relative favorability and stability of institutional environments. Using a sample of foreign affiliates in 31 subnational states within 7 subnational clusters of China during 1998-2008, our study shows that foreign affiliate performance increases in the subnational cluster with better-developed or less-imbalanced formal institutions, and in the subnational state with relatively medium-developed or relatively less-imbalanced formal institutions within the subnational cluster. [ABSTRACT FROM AUTHOR]

Market-oriented institutional change undergoing in emerging markets has rendered their business environment attractive but also volatile. How foreign-invested firms perform in this oft-changing institutional environment? To answer this question, we define two dimensions of institutional volatility and examine their differential effects on the performance of foreign-invested firms. Additionally, we explore how local experience and ownership structure of foreign firms, as boundary conditions, moderate the impact of market-oriented institutional change. We test our hypotheses using a sample of over 50,000 foreign-invested firms in China across ten years. [ABSTRACT FROM AUTHOR]

Research has paid much attention to the determinant role of educational factors and personal factors on entrepreneurial intentions. However, evidence on how entrepreneurship education impacts entrepreneurial intention remains insufficient. To answer this question, drawing on the theory of planned behavior (TPB), we propose and test on three mediating effects (attitude, subjective norm, and perceived behavioral control towards entrepreneurship) through which entrepreneurship education is associated with entrepreneurial intention. Based on a sample of 201 university students in Hong Kong, we find that the positive relationship between entrepreneurship education and entrepreneurial intention is significantly mediated by attitude, subjective norm, and perceived behavioral control towards entrepreneurship. Contributing to the general literature of entrepreneurship, this study helps us to better understand the mechanism through which one's entrepreneurship education may enhance his/her entrepreneurial intention. [ABSTRACT FROM AUTHOR]

This study applies the paradox lens to identify tensions caused by multiple tasks, divergent opinions, and different roles that top management teams (TMTs) typically cope with and introduces the tertius iungens (TI) perspective as a resolution to the paradoxical tensions. We argue that the paradoxical tensions may have contradictory implications for firm performance but TI-oriented chief executive officers (CEOs) may help bridging the conflicting aspects of a tension, leading to better firm performance. The results based on a survey sample of TMTs in 93 Chinese new ventures support our arguments, showing that the influence of TMT polychronicity, dissent, and role diversification on firm performance is more positive when the team is led by a TI-oriented CEO. We discuss implications for both paradox and tertius iungens perspectives in the context of strategic leadership research. [ABSTRACT FROM AUTHOR]

Based on the institution-based view, increasing number of research examine how institutions could shape firm behaviors and performance in various contexts. However, an implicit assumption of previous studies is that different institutional aspects exert impacts separately and independently. This study departs from prior research by arguing that distinct institutional dimensions are interrelated with each other in a way that the influence of one institutional dimension is contingent on the existence(or absence) of other institutional dimensions. Specifically, we focus on how different institutional dimensions in host country interactively shape multinational enterprises (MNE) subsidiary ownership structures. [ABSTRACT FROM AUTHOR]

Basing the institution-based view, this article investigates the separate and joint effects of economic, political, and social institutions between or within subnational regions on foreign affiliate performance, and the relative magnitude of these three institutional constituents given affiliate contingency. A longitudinal analysis containing 483,335 foreign affiliate-year observations that include 127,211 foreign affiliates in 31 Chinese subnational regions during 1998-2008 shows that foreign affiliate performance varies noticeably both under separate and joint subnational institutions. The results suggest that economic, political, and social institutions separately have a positive relationship with foreign affiliate performance, and mutually substitute for each other in facilitating foreign affiliate performance. Furthermore, economic, political, and social institutions can more facilitate performance of foreign affiliate with larger size, or larger innovative outputs. The contributions and implications for future research and practice are discussed. [ABSTRACT FROM AUTHOR]

Using 150,542 cases of foreign subsidiaries operating in an emerging economy from 2000 to 2005, this study examines the effect of subnational institutional development on the subsequent expansion strategy of a foreign subsidiary in fixed-assets investment in a subnational region within a host country. We find that a foreign subsidiary would take a large extent of subsequent expansion in the subnational regions where the levels of subnational economic and social institutional development are low, because these regional markets embrace great uncertainties, which requires the subsidiary to extend its internalized operation. In addition, our study shows that performance feedback of a foreign subsidiary plays significant negative moderating effects on the relationships between the levels of subnational political and social institutional development and the subsequent expansion of a foreign subsidiary. Our study contributes to international expansion literature by emphasizing subnational institutions within a host country and the performance feedback of a foreign subsidiary. [ABSTRACT FROM AUTHOR]