Internationalization of Turkish business groups: motives and institutional context
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 20 September 2022
Abstract
Purpose
This paper aims to investigate the internationalization motives behind location choice among emerging country business groups (EBGs) and the way in which institutional factors affect Türkiye’s foreign direct investment (FDI).
Design/methodology/approach
This study develops a multi-perspective framework that integrates the ownership, location and internalization (OLI) paradigm (Dunning and Lundan, 2008) and the linkage, leverage and learning (LLL) model (Mathews, 2006) with neo-institutional theory to explain the internationalization of EBGs. It adopts a multiple-case study research method relying on 14 semi-structured interviews with top executives to explore the internationalization strategy of a set of Turkish BGs.
Findings
This study supports the combination of the OLI paradigm, the LLL model and neo-institutional theory to explain EBGs’ internationalizing behaviors. Turkish BGs have adopted both asset exploitation and asset augmentation internationalization strategies. The institutional legitimacy mechanism moderates the internationalization motives of Turkish BGs, and their host country location choice and normative pressures are more salient than their regulative and cognitive pressures.
Research limitations/implications
This study is based on a sample of EBGs from Türkiye, and this restriction limits the generalizability/applicability of the findings to BGs globally.
Originality/value
Few studies have considered EBGs and their internationalization strategies in the international business field. This paper puts forward an integrated framework for analyzing internationalization and legitimacy in the institutional context of EBGs. This study highlights that BGs bridge institutional voids. Focusing on Turkish BGs helps to answer Granovetter’s Coasian question and contributes to the understanding of emerging countries’ economic development.
Keywords
Acknowledgements
This study was supported by the TÜBİTAK 1,001 Scientific and Technological Research Projects Funding Program within the scope of the project numbered 215K261 and titled “The Effect of Internationalization Motivations of Holdings in Turkey on the Selection of Location: An Integrative Approach for Developing Countries.”
Citation
Sahin, K., Tatoğlu, E., Mert, K., Kaplan, T. and Golgeci, I. (2022), "Internationalization of Turkish business groups: motives and institutional context", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-06-2021-0974
Publisher
:Emerald Publishing Limited
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