Legal distance and entrepreneurial orientation of foreign subsidiaries: evidence from Southeast Asia
Legal distance and entrepreneurial orientation of foreign subsidiaries: evidence from Southeast Asia
How will variation in legal distance influence a foreign subsidiary's propensity to engage in entrepreneurially orientated initiatives within the context of an emerging market environment? We answer this question by combining elements of institutional theory to suggest that legal distance between a foreign subsidiary's parent home and host country, as well as managerial perceptions of deficiencies in the host country legal service sector, will influence EO initiatives. By analyzing 352 multinational enterprise foreign subsidiaries operating in the Philippines and Thailand our results indicate the complexity of these relationships in that there is a curvilinear (U-shaped) relationship concerning the legal distance between a foreign subsidiary's parent home and host country and its propensity to engage in EO initiatives. Our findings also suggest that this curvilinear relationship will strengthen as managerial perceptions of host country legal deficiencies increase, particularly when the parent possess an in-house legal affairs department. Following these insights, we discuss theoretical implications and future research opportunities.
White, George O. III
b3e11dfb-2b9a-42de-941c-dbc3c281aa02
Rajwani, Tazeeb
4e2beda0-4f14-417f-9d3a-b06e19f4257f
Krammer, Sorin M.S.
24ce872e-5044-4846-bb35-88e12c74c854
15 September 2022
White, George O. III
b3e11dfb-2b9a-42de-941c-dbc3c281aa02
Rajwani, Tazeeb
4e2beda0-4f14-417f-9d3a-b06e19f4257f
Krammer, Sorin M.S.
24ce872e-5044-4846-bb35-88e12c74c854
White, George O. III, Rajwani, Tazeeb and Krammer, Sorin M.S.
(2022)
Legal distance and entrepreneurial orientation of foreign subsidiaries: evidence from Southeast Asia.
Journal of World Business, 57, [101382].
(doi:10.1016/j.jwb.2022.101382).
Abstract
How will variation in legal distance influence a foreign subsidiary's propensity to engage in entrepreneurially orientated initiatives within the context of an emerging market environment? We answer this question by combining elements of institutional theory to suggest that legal distance between a foreign subsidiary's parent home and host country, as well as managerial perceptions of deficiencies in the host country legal service sector, will influence EO initiatives. By analyzing 352 multinational enterprise foreign subsidiaries operating in the Philippines and Thailand our results indicate the complexity of these relationships in that there is a curvilinear (U-shaped) relationship concerning the legal distance between a foreign subsidiary's parent home and host country and its propensity to engage in EO initiatives. Our findings also suggest that this curvilinear relationship will strengthen as managerial perceptions of host country legal deficiencies increase, particularly when the parent possess an in-house legal affairs department. Following these insights, we discuss theoretical implications and future research opportunities.
Text
JWB-Legal Distance_ EO
- Accepted Manuscript
More information
Accepted/In Press date: 1 August 2022
e-pub ahead of print date: 15 September 2022
Published date: 15 September 2022
Identifiers
Local EPrints ID: 497793
URI: http://eprints.soton.ac.uk/id/eprint/497793
ISSN: 1090-9516
PURE UUID: 0853b652-68a5-4265-8ba5-dc570dd94e06
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Date deposited: 31 Jan 2025 17:42
Last modified: 04 Feb 2025 05:01
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Contributors
Author:
George O. III White
Author:
Tazeeb Rajwani
Author:
Sorin M.S. Krammer
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