By S. Marinova

Institutional affects on company Internationalization addresses quite a few points of the investigated phenomenon, supplying an perception within the position of the different types of capitalism at the globalization of industrial actions around the globe.

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Institutional Impacts on Firm Internationalization

Institutional affects on enterprise Internationalization addresses numerous features of the investigated phenomenon, delivering an perception within the function of the different types of capitalism at the globalization of commercial actions all over the world.

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We finally seek to establish whether adaptation is a function of the time a subsidiary has been operating in a foreign institutional environment. The variable ‘subsidiary age’ is key to convergence research within the VoC framework which implies that sooner or later foreign firms may be inclined to fully adapt to the local institutional setup in order to maximize the benefits of institutional complementarity. With time, foreign subsidiaries are likely to become more entwined with indigenous stakeholders such as regional authorities, locally recruited personnel and the local community and, consequently, show gravitation towards ‘local ways of doing things’.

33 −0. 10∗∗ Inter-firm relations 28 Andrei Kuznetsov and Marcus Jacob 29 At the same time, British subsidiaries proved more prone than their German headquarters to make use of such cooperative practices as performancerelated pay schemes and employee consultation and suggestion schemes. The validity of parent-subsidiary comparison within the domain of interfirm relations (IFR) may cause doubts reflecting the fact that the role of the parent firm is by default significantly different from the role of the subsidiary.

2001). Towards a Comparative Institutional Analysis. Cambridge, MA: MIT Press. , Faulkner, D. and Pitkethly, R. (2000). Foreign Direct Investment in the UK 1985–1994: The Impact on Domestic Management Practice, Journal of Management Studies, 37: 141–66. Costello, A. and Costello, T. (2004). Corporate Governance in Multinational Corporations, Midwest Academy of Management Proceedings 2004 Annual Conference ‘e-Motionalizing Management: The Challenge for Globalizing Organizations’, Minneapolis, MN.

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