Taking advantage of institutional weakness? Political stability and foreign subsidiary survival in primary industries
نویسندگان
چکیده
Purpose This paper aims to investigate the extent which locating primary industry subsidiaries in politically unstable countries impacts their survival. The authors argue that foreign multinational enterprises less stable political environments can shape policies are impactful on costs of operating industries and avoid compliance with more stringent at home. Design/methodology/approach Using a sample 753 sector investments Japanese during period 1986 2013, conduct parametric survival analysis relationship between stability subsidiary Findings Political instability has slight, curvilinear survival, such both high low associated lower exit hazard, while moderate levels increased hazard. nonlinear is stronger for efficiency-seeking subsidiaries, weaker market-seeking subsidiaries. Originality/value research contributes debate around pros cons globalization by examining firms benefit offshoring costly legal requirements results suggest this non-market strategy should be mitigated through appropriate policy measures provides evidence those already implemented effective.
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ژورنال
عنوان ژورنال: The Multinational Business Review
سال: 2021
ISSN: ['1525-383X', '2054-1686']
DOI: https://doi.org/10.1108/mbr-02-2020-0043