Institutional difference,organizational experience,and foreign affiliate performance: Evidence from Polish firms |
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| Institution: | 1. Center for International Business, University of Leeds, LS2 9JT, UK;2. School of Business, Management and Economics, University of Sussex, BN1 9SL, UK;1. Georg-August, University of Göttingen, Platz der Göttinger Sieben 3, 37073 Göttingen, Germany;2. WU Vienna University of Economics and Business, Welthandelsplatz 1, 1020, Vienna, Austria |
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| 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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| Keywords: | Institutional difference Experience Foreign affiliate performance Institutional economics Organizational learning theory Polish infant multinationals Mixed-method design |
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