Factors influencing perceptions of performance: the case of western FDI in an emerging market

Mehmet Demirbag, Ekrem Tatoglu, Keith Glaister

    Research output: Contribution to journalArticle

    40 Citations (Scopus)

    Abstract

    This paper adopts an integrative approach to incorporate institutional, host country and firm variables as determinants of the factors influencing perceptions of foreign affiliate performance. Based on primary data from 145 affiliates of Western MNEs in Turkey, the findings show that the factors of input quality, comparative cost advantages and government regulations demonstrate a statistically significant impact on the perception of performance of affiliates. In contrast, political risk, financial incentives and cultural distance do not have any significant impact on the perception of performance of affiliates. The findings indicate that firm specific factors are less important than either institutional or perceived environment-specific factors within the host country in influencing perceptions of foreign affiliate performance.
    LanguageEnglish
    Pages310-336
    Number of pages27
    JournalInternational Business Review
    Volume16
    Issue number3
    DOIs
    Publication statusPublished - Jun 2007

    Fingerprint

    Emerging markets
    Influencing factors
    Foreign affiliates
    Host country
    Cultural distance
    Factors
    Multinational enterprises
    Financial incentives
    Costs
    Government regulation
    Specific factors
    Political risk
    Turkey
    Firm-specific factors

    Keywords

    • institutional theory
    • host country and firm variables
    • multinational enterprises
    • Turkey

    Cite this

    Demirbag, Mehmet ; Tatoglu, Ekrem ; Glaister, Keith. / Factors influencing perceptions of performance : the case of western FDI in an emerging market. In: International Business Review. 2007 ; Vol. 16, No. 3. pp. 310-336.
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    Factors influencing perceptions of performance : the case of western FDI in an emerging market. / Demirbag, Mehmet; Tatoglu, Ekrem; Glaister, Keith.

    In: International Business Review, Vol. 16, No. 3, 06.2007, p. 310-336.

    Research output: Contribution to journalArticle

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