An integrative institutional approach to MNC performance in China

• Published in: Asia Pacific business review Vol. 20; no. 4; pp. 541 - 557
• Main Authors: Ando, Naoki, Ding, Daniel Z.
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 02.10.2014; Taylor & Francis Ltd
• Subjects: Business; China; China (People's Republic); Competition; Competitive advantage; Competitiveness; Economic analysis; Economic performance; Economics; Empirical research; Exploitation; Financial performance; Host country; institutional theory; Integrative approach; International business enterprises; Japan; multinational corporation; Multinational corporations; Multinational enterprises; Organization theory; resource-based view; Studies; Subsidiary; subsidiary performance; China; Japan
• ISSN: 1360-2381; 1743-792X
• DOI: 10.1080/13602381.2014.900234

This study adopts an integrative approach that incorporates the resource-based view and institutional theory in its analyses of the performances of multinational corporations in China. Firm-specific resources have been assumed as a unique source of competitive advantages when firms go overseas. However, differences in institutional environments between the host country and the home country can negatively affect the competitiveness generated by resource exploitation. Empirical analysis using the data consisting of 209 Japanese firms operating in China finds that while the exploitation of firm-specific resources improves their performance, institutions in China moderate the positive impact on performance.