We ask whether MNEs’ experience of institutional quality and political risk within their “home” business environments influences their decisions to enter a given country. We set out an explicit theoretical model that allows for the possibility that firms from South source countries may, by virtue of their experience with poor institutional quality, derive a competitive advantage over firms from North countries with respect to investing in destinations in the South. We show that the experience gained by such MNEs of poorer institutional environments may result in their being more prepared to invest in other countries with correspondingly weak institutions.
|Place of Publication||Glasgow|
|Publisher||University of Strathclyde|
|Number of pages||18|
|Publication status||Published - Aug 2011|
- foreign direct investment
- multinational enterprises
- institutional quality