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

    43 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.
    Original languageEnglish
    Pages (from-to)310-336
    Number of pages27
    JournalInternational Business Review
    Volume16
    Issue number3
    DOIs
    Publication statusPublished - Jun 2007

    Keywords

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

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