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Institutional difference, organizational experience, and foreign affiliate performance: Evidence from Polish firms

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  • Trąpczyński, Piotr
  • Banalieva, Elitsa R.

Abstract

We draw from the institutional economics and organizational learning theories to clarify two international business debates. The first debate involves how institutional distance affects foreign affiliate performance: some propose a negative and others a positive direct effect. We clarify this debate by differentiating between negative and positive institutional difference. The second debate involves how experience modifies this relationship: some propose a negative and others a positive moderating effect. We clarify this debate by differentiating between similar and dissimilar experience, creating four moderating effects: Advantage of Challenge Anticipation, Advantage of Opportunity Anticipation, Disadvantage of Polymath Downgrading, and Disadvantage of Specialist Upgrading.

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  • Trąpczyński, Piotr & Banalieva, Elitsa R., 2016. "Institutional difference, organizational experience, and foreign affiliate performance: Evidence from Polish firms," Journal of World Business, Elsevier, vol. 51(5), pages 826-842.
  • Handle: RePEc:eee:worbus:v:51:y:2016:i:5:p:826-842
    DOI: 10.1016/j.jwb.2016.07.013
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