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Navigating the Web of Informal Institutions When Investing in a Strange Land: Chinese Multinational Enterprises in Australia

Author

Listed:
  • Zhang, Mingqiong Mike

    (Monash University)

  • Lu, Ying

    (Macquarie University)

  • Zhu, Jiuhua Cherrie

    (Monash University)

  • Zhou, Hui

    (Hunan University)

Abstract

Multinational enterprises (MNEs) need to understand and handle various informal institutions in host countries to survive and succeed. How MNEs effectively manage informal institutional characteristics of host countries is an important question for both practitioners and scholars. This paper addresses this important but neglected topic based on an in-depth longitudinal qualitative study. It identifies some key informal institutions in Australia, examines how such institutional distinctiveness shapes the behaviour of Chinese expatriates and MNEs and how they handle such informal institutional differences between China and Australia. Our findings challenge some taken-for-granted assumptions regarding informal institutions in the literature and demonstrate that informal institutions of host countries significantly shape the behaviour of expatriates and firm-level strategies of MNEs.

Suggested Citation

  • Zhang, Mingqiong Mike & Lu, Ying & Zhu, Jiuhua Cherrie & Zhou, Hui, 2020. "Navigating the Web of Informal Institutions When Investing in a Strange Land: Chinese Multinational Enterprises in Australia," American Business Review, Pompea College of Business, University of New Haven, vol. 23(2), pages 316-334, November.
    • Handle: RePEc:ris:ambsrv:0016
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Australia; China; Informal Institution; Longitudinal Qualitative Study; Multinational Enterprise;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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