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Institutional changes within the European Union: How global cities and regional integration affect MNE entry decisions
Institution:1. Department of Management, Clemson University, 100 Sirrine Hall, Clemson, SC 29634-1305, United States;2. Instituto de Empresa, Maria de Molina, 11, 28006 Madrid, Spain;3. Ivey Business School, Western University, 1255 Western Road, London, Ontario, Canada N6G 0N1;4. ESADE Business School, Ramon Llull University, Av. Pedralbes, 60-62, 08034 Barcelona, Spain;1. Northeastern University, 309 Hayden Hall, Boston, MA 02115, United States;2. University of South Carolina, Darla Moore School of Business, Room 461M, Columbia, SC 29208, United States;1. Institute of Innovation Research, Hitosubashi University, 2-1 Naka, Kunitachi, Tokyo 186-8603, Japan;2. Department of Strategic Management & Entrepreneurship, Carlson School of Management & Law School, University of Minnesota, 3-424 CarlSMgmt, 321 19th Avenue South, Minneapolis, MN 55455, USA;1. Vietnam National University, International School, 144 Xuan Thuy, Cau Giay, Hanoi, Vietnam;2. Department of Global Economics and Management, Faculty of Economics and Business, University of Groningen, Nettelbosje 2, 9747 AE Groningen, The Netherlands;3. School of Economics and Business, VU University Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands;1. Guanghua School of Management, Peking University, Beijing 100871, China;2. Department of Sociology, University of North Carolina-Charlotte, Charlotte, NC 28223, United States;3. School of Business, Renmin University of China, Beijing 100872, China
Abstract:This study focuses on institutional change as a determinant of entry mode. It examines the relationship between the choices of entry implemented by firms seeking cross-border corporate growth in Europe. In doing so it aims to understand how the evolution of Europe as a unified business environment and how the membership of the host country in the European Union affect this outcome. Additionally, it seeks to determine how other related aspects of economic geography, such as global cities, impact entry mode decisions. Overall, the results indicate that institutional changes in Europe, EU membership, and global cities all shape the governance choices of MNEs.
Keywords:European Union  Global cities  Institutional change  M&A  Regional integration
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