Li, X and Sun, L (2017) How Do Sub-national institutional constraints Impact Foreign Firm Performance? International Business Review, 26 (3). pp. 555-565. ISSN 0969-5931

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Abstract

This paper examines the impact of sub-national institutions on the performance of foreign firms in China. Building on institutional theory, we envisage that the negative effect of sub-national institutional constraints is moderated by firm size and age, entry mode, and market orientation. Our hypotheses are tested on a large-firm-level dataset of about 29,000 foreign firms in 120 cities in China within the period of 1999–2005. We find that firm size and age both have a diminishing positive impact on foreign firm performance; moreover, there is a U-shaped relationship between firm age and foreign firm performance in cities with higher level institutional constraints. We also find that joint ventures help mitigate the negative impact of sub-national institutional constraints on foreign firm performance when the level of institutional constraints is higher.

Item Type: Article
Additional Information: This is the accepted author manuscript (AAM). The published version of record is available from Elsevier at http://dx.doi.org/10.1016/j.ibusrev.2016.11.004 - please refer to any applicable terms of use of the publisher.
Uncontrolled Keywords: sub-national institutions, institutional theory, foreign firm, firm performance, China
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Humanities and Social Sciences > Keele Management School
Depositing User: Symplectic
Date Deposited: 09 Mar 2017 15:23
Last Modified: 17 May 2017 09:56
URI: http://eprints.keele.ac.uk/id/eprint/3007

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