This study investigates regional orientation of emerging-economy MNEs (EMNEs) conducting cross-border M&As (CBMAs) in developed economies. Based on institutional theory, we argue that EMNEs’ locational choice for CBMAs is a nested decision involving the consideration of both regional- and country-specific institutional factors. Empirical evidence reveals that EMNEs are more likely to undertake CBMAs outside the home region if the overall institutional environment of the host region is better relative to the home region. Though the development level of a platform country’s institution relative to the regional institution makes no difference to an EMNE’s locational decision of choosing home or non-home region, we find that inter-firm mimetic force within a platform country complements regional institutional effects.
|Title of host publication||The Routledge Companion to the Geography of International Business|
|Editors||Gary Cook, Jennifer Johns, Frank McDonald, Jonathan Beaverstock, Naresh Pandit|
|Number of pages||17|
|Publication status||Published - 6 Apr 2018|