Abstract
We analyze the impact of home country uncertainty on the internationalization-performance relationship of emerging market firms. Building on organizational learning theory and the institutional approach, we argue that internationalization has a positive impact on the performance of emerging market firms, and that this relationship is strengthened for firms based in emerging countries with higher corruption and political risk. The reason is that by being exposed to high levels of home country uncertainty in the form of political risk and corruption, firms develop an uncertainty management capability at home that helps them face the challenges of internationalization better. We also propose that this uncertainty management capability helps emerging market firms perform better outside of their home region. We test our arguments on a sample of 536 firms from Argentina, Brazil, Chile, and Peru.
| Original language | English |
|---|---|
| Pages (from-to) | 209-221 |
| Journal | JOURNAL OF WORLD BUSINESS |
| Volume | 53 |
| Issue number | 2 |
| Early online date | 2 Dec 2017 |
| DOIs | |
| Publication status | Published - Feb 2018 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 16 Peace, Justice and Strong Institutions
Keywords
- Internationalization
- Performance
- Uncertainty
- Political risk
- Corruption
- Emerging markets
- Multinational firms
- Latin America
- Region
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