Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil

Institutional distance (ID) has come to be a key concept in understanding the determinant factors of the performance of a multinational company’s (MNC) subsidiaries in emerging economies. However, the results of empirical studies are contradictory and inconclusive. The objective of th...

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Autores principales:	Jonas Fernando Petry, Mohamed Amal, Dinorá Eliete Floriani
Formato:	article
Lenguaje:	EN PT
Publicado:	FUCAPE Business School 2018
Materias:	institutional distance entry modes cluster resources performance of subsidiaries Business HF5001-6182
Acceso en línea:	https://doaj.org/article/af1d8dea793a42bb91d6a6cf493e3799
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spelling	oai:doaj.org-article:af1d8dea793a42bb91d6a6cf493e37992021-11-11T15:48:07ZInstitutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil1807-734X10.15728/bbr.2018.15.3.6https://doaj.org/article/af1d8dea793a42bb91d6a6cf493e37992018-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123056425006https://doaj.org/toc/1807-734XInstitutional distance (ID) has come to be a key concept in understanding the determinant factors of the performance of a multinational company’s (MNC) subsidiaries in emerging economies. However, the results of empirical studies are contradictory and inconclusive. The objective of this study is to evaluate the effects of ID on the performance of foreign firms’ subsidiaries and the extent to which these effects may be mediated by locating these companies within regional clusters and by different choices of entry mode. Through a regression analysis of a sample of 308 subsidiaries of foreign firms, results show that whereas ID is negatively related with the firm’s performance, locations within clusters and access to the resources afforded by economies of agglomeration have positive effects on performance. Finally, the empirical evidence indicates that access to the resources of industrial clusters moderates the effects of ID on the performance, motivating MNCs to adopt overseas entry modes for complete control.Jonas Fernando PetryMohamed AmalDinorá Eliete FlorianiFUCAPE Business Schoolarticleinstitutional distanceentry modescluster resourcesperformance of subsidiariesBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 15, Iss 3, Pp 302-316 (2018)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	institutional distance entry modes cluster resources performance of subsidiaries Business HF5001-6182
spellingShingle	institutional distance entry modes cluster resources performance of subsidiaries Business HF5001-6182 Jonas Fernando Petry Mohamed Amal Dinorá Eliete Floriani Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil
description	Institutional distance (ID) has come to be a key concept in understanding the determinant factors of the performance of a multinational company’s (MNC) subsidiaries in emerging economies. However, the results of empirical studies are contradictory and inconclusive. The objective of this study is to evaluate the effects of ID on the performance of foreign firms’ subsidiaries and the extent to which these effects may be mediated by locating these companies within regional clusters and by different choices of entry mode. Through a regression analysis of a sample of 308 subsidiaries of foreign firms, results show that whereas ID is negatively related with the firm’s performance, locations within clusters and access to the resources afforded by economies of agglomeration have positive effects on performance. Finally, the empirical evidence indicates that access to the resources of industrial clusters moderates the effects of ID on the performance, motivating MNCs to adopt overseas entry modes for complete control.
format	article
author	Jonas Fernando Petry Mohamed Amal Dinorá Eliete Floriani
author_facet	Jonas Fernando Petry Mohamed Amal Dinorá Eliete Floriani
author_sort	Jonas Fernando Petry
title	Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil
title_short	Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil
title_full	Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil
title_fullStr	Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil
title_full_unstemmed	Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil
title_sort	institutional distance, regional clusters and performance of foreign subsidiaries: evidences from brazil
publisher	FUCAPE Business School
publishDate	2018
url	https://doaj.org/article/af1d8dea793a42bb91d6a6cf493e3799
work_keys_str_mv	AT jonasfernandopetry institutionaldistanceregionalclustersandperformanceofforeignsubsidiariesevidencesfrombrazil AT mohamedamal institutionaldistanceregionalclustersandperformanceofforeignsubsidiariesevidencesfrombrazil AT dinoraelietefloriani institutionaldistanceregionalclustersandperformanceofforeignsubsidiariesevidencesfrombrazil
_version_	1718433913175539712

Institutional Distance, Regional Clusters and Performance of Foreign Subsidiaries: Evidences from Brazil

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