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Do regions matter? An integrated institutional and semiglobalisation perspective on the internationalization of MNEs

Author

Listed:
  • Jean-Luc Arrègle

    (EM - EMLyon Business School)

  • Toyah Miller

    (Indiana University [Bloomington] - Indiana University System)

  • Michael Hitt

    (Mays Business School - Texas A&M University [College Station])

  • Paul Beamish

    (UWO - University of Western Ontario)

Abstract

Traditional research suggests a relationship between country-level institutions and the location choices of MNEs. However, more recent theory suggests MNEs also focus on regions (semiglobalization). Therefore, this study examines institutional effects in the context of semiglobalization by considering the influences of three formal institutions (i.e., regulatory control, political democracy, capital investments) of countries and geographic regions on MNEs' location choices of internationalization. We use a sample of Japanese MNEs operating in 45 countries within eight regions. The results show that their degree of internationalization into a country is influenced by both country and regional institutional environments. Additionally, a semiglobalization perspective provides better explanatory power than does the countrylevel perspective. These results present a new perspective on how MNEs consider institutional environments in their international strategy.

Suggested Citation

  • Jean-Luc Arrègle & Toyah Miller & Michael Hitt & Paul Beamish, 2013. "Do regions matter? An integrated institutional and semiglobalisation perspective on the internationalization of MNEs," Post-Print hal-02313035, HAL.
    • Handle: RePEc:hal:journl:hal-02313035
    DOI: 10.1002/smj.2051
    as

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