Journal Article

Do regions matter? An integrated institutional and semiglobalization perspective on the internationalization of MNEs

MILLER, TOYAH L., BEAMISH, PAUL W., ARREGLE, JEAN-LUC, HITT, MICHAEL A.

2013

Overview

Traditional research suggests a relationship between country-level institutions and the location choices of MNEs. However, more recent theory suggests MNEs also focus on regions (semiglobalization). Therefore, this study examines institutional effects in the context of semiglobalization by considering the influences of three formal institutions (i.e., regulatory control, political democracy, capital investments) of countries and geographic regions on MNEs' location choices of internationalization. We use a sample of Japanese MNEs operating in 45 countries within eight regions. The results show that their degree of internationalization into a country is influenced by both country and regional institutional environments. Additionally, a semiglobalization perspective provides better explanatory power than does the country-level perspective. These results present a new perspective on how MNEs consider institutional environments in their international strategy.

• Publisher: John Wiley & Sons, Ltd,John Wiley & Sons,Wiley Periodicals Inc
• Subject: Business structures / Capital investments / Commercial regulation / Corporate strategies / Countries / Decision analysis / Democracy / Economic regulation / Economic strategies / Financial investments / Geographic regions / Globalization / institutional environment / International business / Internationalization / Investment analysis / Japan / Location analysis / location of foreign subsidiaries / Manycountries / Multinational corporations / Multinational enterprises / regional strategy / semi-globalization / Strategic management / Studies