An institutional perspective on foreign direct investment: A multi-level frameworkwork

Management International Review

Volumn 49, Issue 5, 2009, Pages 565-583

  Francis, John ^a   Zheng, CongCong ^a   Mukherji, Ananda ^b  

^a SAN DIEGO STATE UNIVERSITY   (United States)

^b TEXAS A AND M INTERNATIONAL UNIVERSITY   (United States)

Author keywords

Foreign direct investment; Institutional theory; Multiple level framework

Indexed keywords

EID: 77955033008     PISSN: 09388249     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11575-009-0011-x     Document Type: Article

References (93)

1. Albert, S./Whetten, D. A., Organizational Identity, in Cummings, L. L./Staw, B. M. (eds.), Research in Organizational Behavior, 7, Greenwich, Connecticut: JAI 1985, pp. 263-295.
2. Barkhema, H. G./Bell, J./Pennings, J., International Expansion Through Start-up or Acquisition: A Learning Perspective, Academy of Management Journal, 41, 1, 1996, pp. 7-27.
3. Baum, J./Li, S./Usher, J., Making the Next Move: How Experiential and Vicarious Learning Shape Locations of Chains' Acquisitions, Administrative Science Quarterly, 45, 4, 2000, pp. 766-801.
4. Bevan, A./Estrin, S./Meyer, K., Foreign Investment Location and Institutional Development in Transition Economies, International Business Review, 13, 1, 2004, pp. 43-64.
5. Bianchi, C./Arnold, S. J., An Institutional Perspective on Retail Internationalization Success: Home Depot in Chile, International Review of Retail, Distribution, and Consumer Research, 14, 2, 2004, pp. 149-169.
6. Brouthers, K. D./Brouthers, L. E., Acquisition or Greenfield Start-up? Institutional, Cultural, and Transaction Cost Influences, Strategic Management Journal, 21, 1, 2000, pp. 89-98.
7. Chan, C. M./Makino, S./Isobe, T., Interdependent Behavior in Foreign Direct Investment: The Multi-level Effects of Prior Entry and Prior Exit on Foreign Market Entry, Journal ofInternational Business Studies, 37, 5, 2006, pp. 642-665.
8. Chang, S. J., International Expansion Strategy of Japanese Firms: Capability Building through Sequential Entry, Academy of Management Journal, 38, 2, 1995, pp. 383-407.
9. Chang, S. J./Rosenzweig, P., The Choice of Entry Mode In Sequential Foreign Direct Investment, Strategic Management Journal, 22, 8, 2001, pp. 747-776.
10. Chen, M.-J./MacMillan, I., Nonresponse and Delayed Response to Competitive Moves: The Roles of Competitor Dependence and Action Irreversibility, Academy of Management Journal, 35, 3, 1992, pp. 539-570.
11. Chen, M.-J./Smith, K./Grimm, C., Action Characteristics as Predictors of Competitive Responses, Management Science, 38, 3, 1992, pp. 439-455.
12. Cho, K./Padmanabhan, P., Acquisition versus New Venture: The Choice of Foreign Establishment Mode by Japanese Firms, Journal ofInternational Management, 1, 3, 1995, pp. 255-285.
13. Contractor, F., International Technology Licensing: Compensation, Costs and Negotiation, Lexington, Massachusetts: Lexington Books 1981.
14. Cyert, R. M./March, J. G., A Behavioral Theory of the Firm, Englewood Cliffs, New Jersey: Prentice-Hall 1963.
15. Dacin, M. T., Isomorphism in Context: The Power and Prescription of Institutional Norms, Academy of Management Journal, 40, 1, 1997, pp. 46-81.
16. D'Aunno, T./Sutton, R./Price, R., Isomorphism and External Support in Conflicting Institutional Environments: A Study of Drug Abuse Treatment Units, Academy of Management Journal, 34, 3, 1991, pp. 636-661.
17. Davis, P./Desai, A./Francis, J., Mode of International Entry: An Isomorphism Perspective, Journal ofInternational Business Studies, 31, 2, 2000, pp. 239-258.
18. Deephouse, D. L., Does Isomorphism Legitimate?, Academy of Management Journal, 39, 4, 1996, pp. 1024-1039.
19. Delios, A./Henisz, W., Policy Uncertainty and the Sequence of Entry by Japanese Firms 1980-1998, Journal ofInternational Business Studies, 34, 3, 2003, pp. 227-241.
20. DiMaggio, P. J./Powell, W. W., The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields, American Sociological Review, 48, 2, 1983, pp. 147-160.
21. Douglas, M., How Institutions Think, Syracuse, New York: Syracuse University Press 1986.
22. Doz, Y. L./Bartlett, C. A./Prahalad, C. K., Global Competitive Pressures and Host Country Demands: Managing Tensions in MNCs, California Management Review, 23, 3, 1981, pp. 63-75.
23. Dunning, J. H., Explaining Changing Patterns of International Production: In Defense of the Eclectic Theory, Oxford Bulletin of Economics and Statistics, 41, 4, 1979, pp. 269-295.
24. Erramilli, M. K., The Experience Factor in Foreign Market Entry Behavior of Service Firms, Journal ofInternational Business Studies, 22, 3, 1991, pp. 479-502.
25. Evans, W./Kessides, I., Living by the "Golden Rule": Multimarket Contact in the U. S. Airline Industry, Quarterly Journal ofEconomics, 109, 2, 1994, pp. 341-366.
26. Fitzgerald Bone, P./France, K., International Harmonization of Food and Nutrition Regulation: The Good and the Bad, Journal ofPublic Policy & Marketing, 22, 1, 2003, pp. 102-110.
27. Garcia-Pont, C./Nohria, N., Local Versus Global Mimeticism: The Dynamics of Alliance Formation in the Automobile Industry, Strategic Management Journal, 23, 4, 2002, pp. 307-321.
28. Gatignon, H./Anderson, E., The Multinational Corporation's Degree of Control Over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation, Journal ofLaw, Economics and Organization, 4, 2, 1988, pp. 305-336.
29. Ghoshal, S./Bartlett, C. A., The Multinational Corporation as an Interorganizational Network, Academy of Management Review, 15, 4, 1990, pp. 603-625.
30. Ghoshal, S./Westney, D. E., Organization Theory and the Multinational Corporation, New York: St. Martin's Press 1993.
31. Gimeno, J. et al., Explanations of Clustering in the International Expansion Moves of U. S. Telecommunications Firms, Paper presented at Strategic Management Society, San Francisco, California 2001.
32. Gimeno, J./Woo, C., Hypercompetition in an Multimarket Environment: The Role of Strategic Similarity and Multimarket Contact in Competitive De-escalation, Organization Science, 7, 3, 1996, pp. 322-341.
33. Goodrick, E./Salancik, G. R., Organizational Discretion in Responding to Institutional Practices: Hospitals and Cesarean Births, Administrative Science Quarterly, 41, 1, 1996, pp. 1-28.
34. Greve, H. R., Jumping Ship: The Diffusion of Strategy Abandonment', Administrative Science Quarterly, 40, 3, 1995, pp. 444-473.
35. Greve, H. R., Managerial Cognition and the Mimetic Adoption of Market Positions: What You See is What You Do, Strategic Management Journal, 19, 10, 1998, pp. 967-988.
36. Greve, H. R., Organizational Learning from Performance Feedback: A Behavioral Perspective on Innovation and Change, Cambridge, United Kingdom: University Press 2003.
37. Guillen, M. F., Structural Inertia, Imitation, and Foreign Expansion: South Korean Firms and Business Groups in China, Academy of Management Journal, 45, 3, 2002, pp. 509-525.
38. Guler, I./Guillen, M. F./Macpherson, J. M., Global Competition, Institutions, and the Diffusion of Organizational Practices: The International Spread of ISO 9000 Quality Certificates, Administrative Science Quarterly, 47, 2, 2002, pp. 207-233.
39. Haunschild, P./Miner, A., Modes of Organizational Imitation: The Effects of Outcome Salience and Uncertainty, Administrative Science Quarterly, 42, 3, 1997, pp. 472-500.
40. Haveman, H., Follow the Leader: Mimetic Isomorphism and Entry into New Markets, Administrative Science Quarterly, 38, 4, 1993, pp. 593-627.
41. Henisz, W. J./Delios, A., Uncertainty, Imitation and Plant Location: Japanese Multinational Corporations, 1990-1996, Administrative Science Quarterly, 46, 3, 2001, pp. 443-475.
42. Hill, C. W./Hwang, P./Kim, W., An Eclectic Theory of the Choice of International Entry Mode, Strategic Management Journal, 11, 2, 1990, pp. 117-128.
43. Hirschman, A. O., Exit, Voice and Loyalty, Cambridge, Massachusetts: Harvard University Press 1970.
44. Hofstede, G., Culture's Consequences: International Differences in Work-related Values, Beverly Hills, California: Sage 1980.
45. Huang, Y./Sternquist, B., Retailers' Foreign Market Entry Decisions: An Institutional Perspective, International Business Review, 16, 5, 2007, pp. 613-629.
46. Hymer, S., The International Operations of National Firms: A Study of Foreign Direct Investment, Cambridge, Massachusetts: MIT Press 1976.
47. Investor. EA. com, Strategic Partnership with The 9 to Expand EA's Offering in China's Online Gaming Market, http://investor. ea. com/phoenix. zhtml?c=88189& p=irol-newsArticle& ID=1004569& highlight= 2007.
48. Isobe, T./Makino, S./Montgomery, D., Resource Commitment, Entry Timing and Market Performance of Foreign Direct Investments in Emerging Economies: The Case of Japanese International Joint Ventures in China, Academy of Management Journal, 43, 3, 2000, pp. 468-484.
49. Jensen, J., Policy Diffusion through Institutional Legitimation: State Lotteries, Journal ofPublic Administration Research and Theory, 13, 4, 2003, pp. 521-541.
50. Johanson, J./Vahlne, J. E., The Internationalization Process of the Firm: A Model of Knowledge Development and Increasing Foreign Market Commitment, Journal ofInternational Business Studies, 8, 1, 1977, pp. 23-32.
51. Johanson, J./Wiedersheim-Paul F., The Internationalization of the Firm: Four Swedish Cases, Journal of International Business Studies, 12, 3, 1975, pp. 305-322.
52. Kim, W. C./Hwang, P., Global Strategy and Multinationals' Entry Mode Choice, Journal ofInternational Business Studies, 23, 1, 1992, pp. 29-54.
53. Kogut, B./Singh, H., The Effect of National Culture on the Choice of Entry Mode, Journal ofInternational Business Studies, 19, 3, 1988, pp. 411-432.
54. Kostova, T., Transnational Transfer of Strategic Organizational Practices: A Contextual Perspective, Academy of Management Review, 24, 2, 1999, pp. 308-324.
55. Kostova, T./Zaheer, S., Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational Enterprise, Academy of Management Review, 24, 1, 1999, pp. 64-81.
56. Larson, M. S., The Rise of Professionalism: A Sociological Analysis, Berkeley: University of California Press 1977.
57. Lodge, M./Wegrich, K., Control Over Government: Institutional Isomorphism and Governance Dynamics in German Public Administration, Policy Studies Journal, 33, 2, 2005, pp. 417-442.
58. Lu, J. W., Intra- and Inter-organizational Imitative Behavior: Institutional Influences on Japanese Firms' Entry Mode Choice, Journal ofInternational Business Studies, 33, 1, 2002, pp. 19-37.
59. Madhok, A., Cost, Value and Foreign Entry Mode, Strategic Management Journal, 18, 1, 1997, pp. 39-61.
60. Makino, S./Delios, A., Competitive Reaction, Imitation and Bunching in Foreign Entry Decisions, Academy of Management Proceedings, IM, 2000, pp. C1-C6.
61. March, J. G./Shapira, Z., Variable Risk Preferences and the Focus of Attention, Psychological Review, 99, 1, 1992, pp. 172-183.
62. March, J. G./Simon, H. A., Organizations, New York, New York: Wiley 1958.
63. Martin, X./Swaminathan, A./Mitchell, W., Organizational Evolution in the Interorganizational Environment: Incentives and Constraints on International Expansion Strategy, Administrative Science Quarterly, 43, 3, 1998, pp. 566-601.
64. Martinez, R. J./Dacin, M. T., Efficiency Motives and Normative Forces: Combining Transaction Costs and Institutional Logic, Journal ofManagement, 25, 1, 1999, pp. 75-96.
65. Meyer, K. E., Institutions, Transaction Costs, and Entry Mode Choice in Eastern Europe, Journal ofInternational Business Studies, 32, 2, 2001, pp. 357-367.
66. Meyer, J. W./Rowan, B., Institutionalized Organizations: Formal Structure as Myth and Ceremony, American Journal ofSociology, 83, 2, 1977, pp. 340-363.
67. Moyer, D., Satisficing, Harvard Business Review, 85, 4, 2007, p. 144.
68. Nintendo of America, Nintendo asks U. S. to Address Video Game Piracy Problems Worldwide, http://www. nintendo. com/whatsnew/detail/3GwK3lZIp7jrUUeZdcp7se3MlENRIULs 2008.
69. Ocasio, W., Towards an Attention-based View of the Firm, Strategic Management Journal, 18, 7, 1997, pp. 187-206.
70. Oliver, C., Strategic Responses to Institutional Processes, Academy of Management Review, 16, 1, 1991, pp. 145-179.
71. Oliver, C., Determinants of Interorganizational Relationships: Integration, Future Directions, Academy of Management Review, 15, 2, 1990, pp. 241-265.
72. Pfeffer, J./Salancik, G., The External Control of Organizations, New York: Harper & Row 1978.
73. Porac, J. et al., Rivalry and the Industry Model of Scottish Knitwear Producers, Administrative Science Quarterly, 40, 2, 1995, pp. 203-227.
74. Roberts, P. W./Greenwood, R., Integrating Transaction Cost and Institutional Theories: Toward a Constrained-efficiency Framework for Understanding Organizational Design Adoption, Academy of Management Review, 22, 2, 1997, pp. 346-373.
75. Robinson, P., Structural Interdependence and Practice Conformity: An Empirical Examination of American MNEs and their Subsidiaries in Japan, Academy of Management Proceedings, 1995, pp. 192-196.
76. Rosenkopf, L./Abramhamson, E., Modeling Reputation and Information Influences in Threshold Models of Bandwagon Innovation Diffusion, Computational and Mathematical Organizational Theory, 5, 4, 1999, pp. 361-384.
77. Rosenzweig, P. M./Singh, J. V., Organizational Environments and the Multinational Enterprise, Academy of Management Review, 16, 2, 1991, pp. 340-361.
78. Scott, W. R., The Adolescence of Institutional Theory, Administrative Science Quarterly, 32, 4, 1987, pp. 493-511.
79. Scott, W. R., Institutions and Organizations, 1st ed., Thousands Oaks, California: Sage 1995.
80. Scott, W. R., Institutions and Organizations, 2nd ed., Thousands Oaks, California: Sage 2001.
81. Simon, H., Administrative Behavior: A Study of Decision-making Processes in Administrative Organizations, New York: The Free Press 1947.
82. Shaver, J./Mitchell, W./Yeung, B., The Effect of Own-firm and Other-firm Experience on Foreign Direct Investment Survival in the United States, 1987-1992, Strategic Management Journal, 18, 10, 1997, pp. 811-824.
83. Strang, D./Meyer, J. W., Institutional Conditions for Diffusion, Theory and Society, 22, 4, 1993, pp. 487-511.
84. Strang, D./Tuma, N. B., Spatial and Temporal Heterogeneity in Diffusion, American Journal ofSociology, 99, 3, 1993, pp. 614-639.
85. Suchman, M. C., Managing Legitimacy: Strategic and Institutional Approaches, Academy of Management Review, 20, 3, 1995, pp. 571-610.
86. Sundaram, A. K./Black, J. S., The Environment and Internal Organization of Multinational Enterprises, Academy of Management Review, 17, 4, 1992, pp. 729-757.
87. Tolbert, P. S./Zucker, L. G., Institutional Sources of Change in the Formal Structure of Organizations: The Diffusion of Civil Service Reform, 1880-1993, Administrative Science Quarterly, 28, 1, 1983, pp. 22-39.
88. Xu, D./Pan, Y./Beamish, P. W., The Effect of Regulative and Normative Distances on MNE Ownership and Expatriate Strategies, Management International Review, 44, 3, 2004, pp. 285-307.
89. Xu, D./Shenkar, O., Institutional Distance and the Multinational Enterprise, Academy of Management Review, 27, 4, 2002, pp. 608-618.
90. Yamawaki, H., Bunching in Foreign Direct Investment: Evidence on Japanese Firms in U. S. Manufacturing Industries, CIBER Working Paper No. 98-20, Los Angeles, California: UCLA.
91. Yiu, D./Makino, S., The Choice Between Joint Venture and Wholly Owned Subsidiary: An Institutional Perspective, Organization Science, 13, 6, 2002, pp. 667-684.
92. Zaheer, S., Overcoming the Liability of Foreigness, Academy of Management Journal, 38, 2, 1995, pp. 341-363.
93. Zucker, L. G., Introduction: Institutional Theories of Organization: Conceptual Development and Research Agenda, in Zucker, L. G. (ed.) Institutional Patterns and Organizations: Culture and Environment, Cambridge, Massachusetts: Ballinger 1988.