Description
The existing literature on foreign firms’ reactions to institutional voids largely draws on transaction-cost economics, neglecting how and why particular firms respond to specific voids. We draw on the comparative capitalisms literature to examine how two multinationals from the same industry, but contrasting institutional environments, respond to the institutional void in Bangladesh’s medical system. Home-country ownership and control institutions influence the firms’ priorities and abilities to work with local organizations. The relative importance of the Bangladesh market, which is specific to each firm, and important host-country legislation also play a role. We extend the existing literature on institutional voids by highlighting the influence of institutionally conditioned firm heterogeneity, and add to the comparative capitalisms literature by stressing how broader contextual factors and specific host-country institutions shape firm behaviour. By doing so, we contribute to emerging research on the interactions between institutions, firms, and strategy.Keywords:
| Period | 30 Jun 2021 → 31 Jul 2021 |
|---|---|
| Held at | Academy of International Business, United States |
| Degree of Recognition | International |