Reducing the risks of going global: Institutional environment and international strategy

Abstract

Findings

When firms consider entering a new foreign market, they also consider the institutional distance between the home and host countries. The differences in culture and in formal institutions compose the institutional distance and affect whether and how firms enter these markets. Greater institutional distance contributes to the liabilities of foreignness the challenges of which must be managed effectively to succeed in the new market.

Citation

(2016), "Reducing the risks of going global: Institutional environment and international strategy", Strategic Direction, Vol. 32 No. 8, pp. 1-3. https://doi.org/10.1108/SD-05-2016-0064