Tell me where you como from and I'll tell you where you're going: asymmetries in the impact of institucional distance on firm market entry

  1. Domínguez Bronchal, Beatriz 1
  2. Gómez Villascuerna, Jaime 1
  3. Maícas López, Juan P. 2
  1. 1 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

  2. 2 Universidad de Zaragoza
    info

    Universidad de Zaragoza

    Zaragoza, España

    ROR https://ror.org/012a91z28

Actas:
XXVII Congreso de ACEDE 2017. Estrategia, Cambio y Redes Empresariales. Aranjuez (Madrid), 18-20 de junio de 2017. Libro de resúmenes
  1. Luis Ángel Guerras Martín (ed. lit.)
  2. José Emilio Navas (ed. lit.)

Editorial: Asociación de Economía y Dirección de Empresas

ISBN: 978-84-697-3588-6

Año de publicación: 2017

Páginas: 69

Congreso: XXVII Congreso de ACEDE 2017. Estrategia, Cambio y Redes Empresariales. Aranjuez (Madrid), 18-20 de junio de 2017

Tipo: Aportación congreso

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Resumen

In this study, we pay attention to the effects of both home and host market formal institutionson entering the host country. We analyze how differences between the formal institutions ofthe host and the home country determine host market selection. We address these differencesby the concept of formal institutional distance (FID). We take a step forwards in this analysisby including two moderator effects into the relationship between FID and market entry: thedirection of the distance –positive versus negative- and the international experience of thefirm. Specifically, we claim that firms confronting a positive formal institutional distance are lessafected by FID. Moreover, we advocate that firms can benefit from previous entries to handleformal institutional distance in future entries. We test the hypothesis of this study in the mobiletelecommunications industry