Subnational institutions,political capital,and the internationalization of entrepreneurial firms in emerging economies |
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Affiliation: | 1. The Chinese University of Hong Kong, Department of Management, Shatin, N.T., Hong Kong;2. University of Reading, Henley Business School, Department of Leadership, Organisations and Behaviour, Henley Center for Entrepreneurship, Whiteknights, Reading RG6 6UDE, United Kingdom;3. Faculty of Business Administration, University of Macau, Avenida da Universidade, Taipa, Macau;1. The Chinese University of Hong Kong, Department of Management, Shatin, N.T., Hong Kong;2. University of Reading, Henley Business School, Department of Leadership, Organisations and Behaviour, Henley Center for Entrepreneurship, Whiteknights, Reading RG6 6UDE, United Kingdom;3. Faculty of Business Administration, University of Macau, Avenida da Universidade, Taipa, Macau;1. Department of Management, Bologna, Italy;2. Department of Industrial and Information Engineering & Economics, University of L’Aquila, Italy;1. Université de Lorraine and Ecricome Universa, Nancy, France;2. Research Department, Central Bank of Albania, Sheshi “Skënderbej”, nr. 1, Tiranë, Albania;3. ICN Business School, 13 Rue Michel Ney, 54000 Nancy, France;1. Goodman School of Business, Brock University, 500 Glenridge Avenue, St. Catharines, ON L2S 3A1, Canada;2. Ivey Business School, Western University, 1151 Richmond Street North, London, Ontario N6A 3K7, Canada;3. Associate Professor of Strategy, Naveen Jindal School of Management, The University of Texas at Dallas, 800 West Campbell Rd, Richardson, TX 75080, United States |
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Abstract: | ![]() This study advances the institution-based view of strategy by integrating it with firm-specific capability considerations. In particular, we investigate the integrative influence of subnational-level home country institutional environments and firm-level political capital, as an important way to seek resources, on emerging economy entrepreneurial firms’ internationalization. With data from Chinese entrepreneurial firms, we find that the development of subnational institutional environments in the home country is related to firms’ degree of internationalization. Furthermore, while political capital with low-level governments enhances the effect of subnational institutions on internationalization, political capital with high levels of government has no such moderation effect. Theoretical and empirical contributions and implications are discussed. |
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Keywords: | Institutional theory Subnational institutional environment Political capital Internationalization Entrepreneurial firms Emerging economies |
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