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Institutional distance and the internationalization process: The case of mobile operators

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  • Pogrebnyakov, Nicolai
  • Maitland, Carleen F.

Abstract

This paper applies the institutional lens to the internationalization process model. It updates the concept of psychic distance in the model with a recently developed, theoretically grounded construct of institutional distance. Institutions are considered simultaneously at the national and industry levels. It also aims to understand whether the internationalization process of service firms is different from the behavior predicted by the model, which was developed for the manufacturing context. We empirically test the model using proportional hazard analysis with 130 instances of entry and presence of mobile operators in Europe and South America over 13Â years. Influences of regulative, normative and cognitive institutional aspects were disaggregated and shown to have differing effect on internationalization. This suggests that institutional distance is a viable alternative to other distance measures used in the internationalization process research. The results also indicate that the internationalization behavior of this type of service firms might differ from the staged process predicted by the internationalization process model.

Suggested Citation

  • Pogrebnyakov, Nicolai & Maitland, Carleen F., 2011. "Institutional distance and the internationalization process: The case of mobile operators," Journal of International Management, Elsevier, vol. 17(1), pages 68-82, March.
  • Handle: RePEc:eee:intman:v:17:y:2011:i:1:p:68-82
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    Cited by:

    1. Asimakopoulos, Grigorios & Hernández, Virginia & Whalley, Jason, 2015. "Internationalization of European mobile telecommunication operators: institutional diversity and performance implications," 26th European Regional ITS Conference, Madrid 2015 127122, International Telecommunications Society (ITS).
    2. Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2015. "Economic Institutions and the Location Strategies of European Multinationals in their Geographical Neighbourhood," John H Dunning Centre for International Business Discussion Papers jhd-dp2015-07, Henley Business School, Reading University.
    3. Carrère, Céline & Fugazza, Marco & Olarreaga, Marcelo & Robert-Nicoud, Frédéric, 2016. "On the heterogeneous effect of trade on unemployment," CEPR Discussion Papers 11540, C.E.P.R. Discussion Papers.
    4. Denk, Nikola & Kaufmann, Lutz & Roesch, Jan-Frederik, 2012. "Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research," Journal of International Management, Elsevier, pages 322-334.
    5. Reddy, Kotapati Srinivasa, 2016. "Institutional Voids and Tax litigation in Emerging Economies: The verdict of Vodafone cross-border acquisition of Hutchison," MPRA Paper 74264, University Library of Munich, Germany, revised 2016.
    6. Nicolai Pogrebnyakov, 2017. "A Cost-Based Explanation of Gradual, Regional Internationalization of Multinationals on Social Networking Sites," Management International Review, Springer, vol. 57(1), pages 37-64, February.
    7. Tobias Pehrsson & Navid Ghannad & Anders Pehrsson & Tobias Abt & Siyuan Chen & Fabian Erath & Tobias Hammarstig, 2015. "Dynamic capabilities and performance in foreign markets: Developments within international new ventures," Journal of International Entrepreneurship, Springer, vol. 13(1), pages 28-48, March.
    8. Wu, Jie & Pangarkar, Nitin & Wu, Zefu, 2016. "The moderating effect of technology and marketing know-how in the regional-global diversification link: Evidence from emerging market multinationals," International Business Review, Elsevier, pages 1273-1284.
    9. ., 2014. "Restructuring among mobile service providers: a ten-year perspective," Chapters,in: Mobile Telecommunications Networks, chapter 1, pages 1-25 Edward Elgar Publishing.
    10. Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2015. "Economic Institutions and the Location Strategies of European Multinationals in their Geographical Neighbourhood," John H Dunning Centre for International Business Discussion Papers jhd-dp2015-07, Henley Business School, Reading University.
    11. Julien Gooris & Carine Peeters, 2012. "Home-Host Country Distance and Governance Choices in Service Offshoring," Working Papers ECARES ECARES 2012-007, ULB -- Universite Libre de Bruxelles.
    12. Fang-Yi Lo & Yu-Ching Chiao & Chwo-Ming Joseph Yu, 2016. "Network and Institutional Effects on SMEs’ Entry Strategies," Management International Review, Springer, vol. 56(4), pages 531-563, August.
    13. Tykvová, Tereza & Schertler, Andrea, 2014. "Does Syndication With Local Venture Capitalists Moderate the Effects of Geographical and Institutional Distance?," Journal of International Management, Elsevier, pages 406-420.
    14. Curwen, Peter & Whalley, Jason, 2013. "Mapping worldwide mobile networks: Some problems and indicative solutions," Telecommunications Policy, Elsevier, pages 1150-1165.
    15. Hernández, Virginia & Nieto, María Jesús, 2015. "The effect of the magnitude and direction of institutional distance on the choice of international entry modes," Journal of World Business, Elsevier, pages 122-132.
    16. repec:eee:intman:v:23:y:2017:i:3:p:242-254 is not listed on IDEAS
    17. Fainshmidt, Stav & White, George O. & Cangioni, Carole, 2014. "Legal Distance, Cognitive Distance, and Conflict Resolution in International Business Intellectual Property Disputes," Journal of International Management, Elsevier, pages 188-200.

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