Pub Date : 2025-11-15DOI: 10.1016/j.ibusrev.2025.102528
Bernardo Silva-Rêgo , Clarice Kogut
This paper presents a systematic literature review of international business risks associated with digital technologies (digital IB risks). As digital technologies rapidly evolve, firms are adapting their business models and internationalising at an unprecedented pace. While existing research has highlighted the benefits of digital internationalisation, this study examines the risks that firms face during this process, providing new perspectives. Following the collection, analysis, synthesis, comparison, and coding of 79 papers, we integrate insights from internalisation theory to enhance our understanding of how multinational enterprises navigate the increasingly complex global digital landscape. Ultimately, this study addresses the gap in understanding and conceptualising digital IB risks by offering a comprehensive literature review, synthesising findings into an integrative framework, and laying the groundwork for future research and practice.
{"title":"Digital IB risks: A systematic literature review through internalisation lenses","authors":"Bernardo Silva-Rêgo , Clarice Kogut","doi":"10.1016/j.ibusrev.2025.102528","DOIUrl":"10.1016/j.ibusrev.2025.102528","url":null,"abstract":"<div><div>This paper presents a systematic literature review of international business risks associated with digital technologies (digital IB risks). As digital technologies rapidly evolve, firms are adapting their business models and internationalising at an unprecedented pace. While existing research has highlighted the benefits of digital internationalisation, this study examines the risks that firms face during this process, providing new perspectives. Following the collection, analysis, synthesis, comparison, and coding of 79 papers, we integrate insights from internalisation theory to enhance our understanding of how multinational enterprises navigate the increasingly complex global digital landscape. Ultimately, this study addresses the gap in understanding and conceptualising digital IB risks by offering a comprehensive literature review, synthesising findings into an integrative framework, and laying the groundwork for future research and practice.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102528"},"PeriodicalIF":6.1,"publicationDate":"2025-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145528287","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-07DOI: 10.1016/j.ibusrev.2025.102526
Vincent E. Kunst , Sjoerd Beugelsdijk
We use comparative institutional theory to explore the predictive power of agency theory against the background of the emerging multipolar world characterized by an increasing distance between institutional systems. Originally developed in the liberal market economy context, agency theory presents managerial ownership and board independence as critical managerial practices to mitigate agency problems. Our analysis at the level of institutional systems of 26,945 firms across 39 countries over a period of 14 years (2009–2022) shows that the predictive power of agency theory is reduced when firms operate in institutional systems at a larger distance from the liberal market economy model. These results are corroborated using propensity score matching methods and cross-validated with an alternative database. We integrate institutional distance research with the theory on comparative institutional systems that have so far mostly operated in silos. The broader implication of our analysis is that the emergence of the multipolar world affects the universal applicability of agency theory and makes it more context-specific. The fundamental idea that the predictive power of our theories is affected by the current global economic developments is an aspect that has so far been overlooked in the de-globalization discussion. We discuss implications for international business scholarship.
{"title":"The predictive power of agency theory in a multipolar world","authors":"Vincent E. Kunst , Sjoerd Beugelsdijk","doi":"10.1016/j.ibusrev.2025.102526","DOIUrl":"10.1016/j.ibusrev.2025.102526","url":null,"abstract":"<div><div>We use comparative institutional theory to explore the predictive power of agency theory against the background of the emerging multipolar world characterized by an increasing distance between institutional systems. Originally developed in the liberal market economy context, agency theory presents managerial ownership and board independence as critical managerial practices to mitigate agency problems. Our analysis at the level of institutional systems of 26,945 firms across 39 countries over a period of 14 years (2009–2022) shows that the predictive power of agency theory is reduced when firms operate in institutional systems at a larger distance from the liberal market economy model. These results are corroborated using propensity score matching methods and cross-validated with an alternative database. We integrate institutional distance research with the theory on comparative institutional systems that have so far mostly operated in silos. The broader implication of our analysis is that the emergence of the multipolar world affects the universal applicability of agency theory and makes it more context-specific. The fundamental idea that the predictive power of our theories is affected by the current global economic developments is an aspect that has so far been overlooked in the de-globalization discussion. We discuss implications for international business scholarship.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102526"},"PeriodicalIF":6.1,"publicationDate":"2025-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145474068","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-04DOI: 10.1016/j.ibusrev.2025.102524
Richard Yeboah , George Nyantakyi , Ali Meftah Gerged
Despite growing interest in the institutional and cultural determinants of corporate governance, limited attention has been paid to how language structure, particularly Future Time Reference (FTR), shapes agency dynamics. This study addresses this gap by integrating agency theory with the principle of linguistic relativity to examine how FTR—a grammatical feature that affects how languages express the future—impacts agency costs across firms and countries. Building on the premise that language influences temporal cognition, we argue that weak-FTR environments reduce the salience of future outcomes, thereby increasing temporal ambiguity in managerial decision-making and elevating agency costs. Using a panel of 20,225 firm-year observations across 17 countries from 2008 to 2020, we find that firms operating in weak-FTR language contexts experience significantly higher agency costs. However, this effect is not deterministic: it is mitigated by two key governance mechanisms. First, managerial risk perception moderates the relationship by reducing ambiguity-driven discretion among risk-averse executives. Second, institutional ownership functions as an external control mechanism, attenuating the adverse cognitive effects of weak-FTR through enhanced monitoring and accountability. By establishing language as a structural yet overlooked antecedent of agency costs, this study contributes to a deeper understanding of cross-national governance variation. It expands agency theory beyond economic incentives to include cognitive-linguistic framing, offering practical implications for multinational firms and policymakers designing governance systems in linguistically diverse contexts.
{"title":"Time orientation in languages and agency costs","authors":"Richard Yeboah , George Nyantakyi , Ali Meftah Gerged","doi":"10.1016/j.ibusrev.2025.102524","DOIUrl":"10.1016/j.ibusrev.2025.102524","url":null,"abstract":"<div><div>Despite growing interest in the institutional and cultural determinants of corporate governance, limited attention has been paid to how language structure, particularly Future Time Reference (FTR), shapes agency dynamics. This study addresses this gap by integrating agency theory with the principle of linguistic relativity to examine how FTR—a grammatical feature that affects how languages express the future—impacts agency costs across firms and countries. Building on the premise that language influences temporal cognition, we argue that weak-FTR environments reduce the salience of future outcomes, thereby increasing temporal ambiguity in managerial decision-making and elevating agency costs. Using a panel of 20,225 firm-year observations across 17 countries from 2008 to 2020, we find that firms operating in weak-FTR language contexts experience significantly higher agency costs. However, this effect is not deterministic: it is mitigated by two key governance mechanisms. First, managerial risk perception moderates the relationship by reducing ambiguity-driven discretion among risk-averse executives. Second, institutional ownership functions as an external control mechanism, attenuating the adverse cognitive effects of weak-FTR through enhanced monitoring and accountability. By establishing language as a structural yet overlooked antecedent of agency costs, this study contributes to a deeper understanding of cross-national governance variation. It expands agency theory beyond economic incentives to include cognitive-linguistic framing, offering practical implications for multinational firms and policymakers designing governance systems in linguistically diverse contexts.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102524"},"PeriodicalIF":6.1,"publicationDate":"2025-11-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145474067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-28DOI: 10.1016/j.ibusrev.2025.102523
Ratan J.S. Dheer , Jane Terpstra-Tong , Len Treviño , David A. Ralston , Brian Tjemkes , Luis Sigala Paparella , Marian Crowley-Henry , Calvin Burns , Fabian Froese , Gabrielle Poeschl , Oswaldo Morales , Erna Szabo , Pingping Fu , Narasimhan Srinivasan , Mario Molteni , Arif Butt , Oliver Furrer , Fidel León Darder , Maria Kangasniemi-Haapala , Ajantha S. Dharmasiri , Ruth Alas
We assess the impact of organizational culture on employees' psychological safety using data from 2451 employees across 18 societies. Our multi-level structural equation models reveal that organizations that emphasize a clan culture foster significantly higher psychological safety than those that emphasize a hierarchy culture, and trust in top management mediates the effect of organizational culture on psychological safety. Additionally, macro-environmental factors, specifically a society's cultural context and governance quality, moderate the effect of trust in top management, explaining variance in psychological safety globally. Our findings make a novel contribution to the literature on psychological safety, international management, and organizational behavior. We outline vital implications for managers and provide directions for future research.
{"title":"Impact of organizational culture on employee psychological safety perception: The pivotal role of trust in top management across 18 societies","authors":"Ratan J.S. Dheer , Jane Terpstra-Tong , Len Treviño , David A. Ralston , Brian Tjemkes , Luis Sigala Paparella , Marian Crowley-Henry , Calvin Burns , Fabian Froese , Gabrielle Poeschl , Oswaldo Morales , Erna Szabo , Pingping Fu , Narasimhan Srinivasan , Mario Molteni , Arif Butt , Oliver Furrer , Fidel León Darder , Maria Kangasniemi-Haapala , Ajantha S. Dharmasiri , Ruth Alas","doi":"10.1016/j.ibusrev.2025.102523","DOIUrl":"10.1016/j.ibusrev.2025.102523","url":null,"abstract":"<div><div>We assess the impact of organizational culture on employees' psychological safety using data from 2451 employees across 18 societies. Our multi-level structural equation models reveal that organizations that emphasize a clan culture foster significantly higher psychological safety than those that emphasize a hierarchy culture, and trust in top management mediates the effect of organizational culture on psychological safety. Additionally, macro-environmental factors, specifically a society's cultural context and governance quality, moderate the effect of trust in top management, explaining variance in psychological safety globally. Our findings make a novel contribution to the literature on psychological safety, international management, and organizational behavior. We outline vital implications for managers and provide directions for future research.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102523"},"PeriodicalIF":6.1,"publicationDate":"2025-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145424512","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-04DOI: 10.1016/j.ibusrev.2025.102521
Anisur R. Faroque , Arafat Rahman , Mohammad Osman Gani , Imranul Hoque
This study explores how heuristics (availability and representativeness) and analytic rational decision-making influence the selection of international business entry modes and their subsequent impact on decision effectiveness and international performance. Grounded in dual-process theories, the research develops hypotheses linking heuristics, analytic rationality, decision effectiveness, and international outcomes. Utilizing a quantitative survey approach, the findings reveal that integrating the availability heuristic with analytic rational decision-making enhances the quality of internationalization decisions, whereas combining analytic decision-making with the representativeness heuristic can diminish decision effectiveness. These results emphasize the critical role of balancing heuristic and analytical approaches in managerial decision-making for international entry, contributing to dual-process theories within the international business context and providing valuable insights into the cognitive strategies shaping entry mode selection and organizational performance.
{"title":"Heuristics and decision rationality in entry mode choice: Implications for decision effectiveness and international performance","authors":"Anisur R. Faroque , Arafat Rahman , Mohammad Osman Gani , Imranul Hoque","doi":"10.1016/j.ibusrev.2025.102521","DOIUrl":"10.1016/j.ibusrev.2025.102521","url":null,"abstract":"<div><div>This study explores how heuristics (availability and representativeness) and analytic rational decision-making influence the selection of international business entry modes and their subsequent impact on decision effectiveness and international performance. Grounded in dual-process theories, the research develops hypotheses linking heuristics, analytic rationality, decision effectiveness, and international outcomes. Utilizing a quantitative survey approach, the findings reveal that integrating the availability heuristic with analytic rational decision-making enhances the quality of internationalization decisions, whereas combining analytic decision-making with the representativeness heuristic can diminish decision effectiveness. These results emphasize the critical role of balancing heuristic and analytical approaches in managerial decision-making for international entry, contributing to dual-process theories within the international business context and providing valuable insights into the cognitive strategies shaping entry mode selection and organizational performance.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102521"},"PeriodicalIF":6.1,"publicationDate":"2025-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145221241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-25DOI: 10.1016/j.ibusrev.2025.102522
Joan-Lluís Capelleras , Victor Martin-Sanchez , Chao Zhang
This study investigates the dilemma faced by family firms in internationalization, balancing socioemotional wealth (SEW) preservation with potential financial gains. Drawing on the mixed gamble perspective, we first examine how family management influences the speed and scope of international expansion. Secondly, we explore the moderating role of external R&D collaboration in these relationships. Drawing on panel data from 3366 Spanish firms and 24,695 firm-year observations, we find that family-managed firms proceed more slowly with internationalization but tend to expand across a broader range of markets. Furthermore, external R&D collaboration supports a wider scope without necessarily accelerating speed. These findings offer new insights into how family management shapes internationalization, highlighting external R&D collaboration as a selective moderator.
{"title":"Family management, external R&D collaboration, and the speed and scope of internationalization","authors":"Joan-Lluís Capelleras , Victor Martin-Sanchez , Chao Zhang","doi":"10.1016/j.ibusrev.2025.102522","DOIUrl":"10.1016/j.ibusrev.2025.102522","url":null,"abstract":"<div><div>This study investigates the dilemma faced by family firms in internationalization, balancing socioemotional wealth (SEW) preservation with potential financial gains. Drawing on the mixed gamble perspective, we first examine how family management influences the speed and scope of international expansion. Secondly, we explore the moderating role of external R&D collaboration in these relationships. Drawing on panel data from 3366 Spanish firms and 24,695 firm-year observations, we find that family-managed firms proceed more slowly with internationalization but tend to expand across a broader range of markets. Furthermore, external R&D collaboration supports a wider scope without necessarily accelerating speed. These findings offer new insights into how family management shapes internationalization, highlighting external R&D collaboration as a selective moderator.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102522"},"PeriodicalIF":6.1,"publicationDate":"2025-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145158566","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines how human capital (HC) outflows, triggered by economic sanctions imposed on Russia, constitute a profound environmental disruption with long-term consequences for firms. Drawing on HC theory and based on case studies of three companies in the Russian IT sector, the study analyzes how large-scale talent relocation, referred to as brain-drain, undermines firms’ strategic investments in HC development. We find that in the face of sustained uncertainty, human resource (HR) managers adopt reactive approaches, leading to the widespread abandonment of professional development initiatives. We argue that this shift risks eroding organizational capabilities and placing firms at a long-term competitive disadvantage. By moving beyond macroeconomic discussions of sanctions and focusing on firm-level human resource management (HRM) responses, this study offers new theoretical insights into how geopolitical shocks reshape HRM practices and disrupt the underlying logic of HC investment in high-skill industries.
{"title":"The double bind: Human resource management under sanctions and skilled labor exodus","authors":"Marina Latukha , Desislava Dikova , Andrei Panibratov , Nikita Kuleshov","doi":"10.1016/j.ibusrev.2025.102520","DOIUrl":"10.1016/j.ibusrev.2025.102520","url":null,"abstract":"<div><div>This paper examines how human capital (HC) outflows, triggered by economic sanctions imposed on Russia, constitute a profound environmental disruption with long-term consequences for firms. Drawing on HC theory and based on case studies of three companies in the Russian IT sector, the study analyzes how large-scale talent relocation, referred to as brain-drain, undermines firms’ strategic investments in HC development. We find that in the face of sustained uncertainty, human resource (HR) managers adopt reactive approaches, leading to the widespread abandonment of professional development initiatives. We argue that this shift risks eroding organizational capabilities and placing firms at a long-term competitive disadvantage. By moving beyond macroeconomic discussions of sanctions and focusing on firm-level human resource management (HRM) responses, this study offers new theoretical insights into how geopolitical shocks reshape HRM practices and disrupt the underlying logic of HC investment in high-skill industries.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102520"},"PeriodicalIF":6.1,"publicationDate":"2025-09-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145119286","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-11DOI: 10.1016/j.ibusrev.2025.102507
Ludan Wu , Dylan Sutherland , John R. Anderson
Do emerging market (E)MNEs, compared with developed market (D)MNEs, engage in more post-acquisition hiring when acquiring foreign high-tech firms? Drawing on the concepts of ‘home base augmentation’ and ‘catching up by hiring’ and extending them to high-tech cross-border M&As, we argue that EMNEs use post-acquisition hiring to access knowledge and embed themselves in world leading innovation networks to build innovation related dynamic capabilities. Using a large, matched sample of cross-border acquisitions, we find that EMNE acquisitions are associated with significantly higher post-acquisition employment growth than DMNE acquisitions. This effect is especially strong when targets are located in developed market technological clusters. These findings suggest that employment growth is not merely a by-product of acquisition, but a deliberate strategy through which EMNEs develop technological capabilities.
{"title":"International high-tech cross-border acquisitions and long-term employment growth in foreign target firms: Are EMNEs catching up by hiring in foreign technological clusters?","authors":"Ludan Wu , Dylan Sutherland , John R. Anderson","doi":"10.1016/j.ibusrev.2025.102507","DOIUrl":"10.1016/j.ibusrev.2025.102507","url":null,"abstract":"<div><div>Do emerging market (E)MNEs, compared with developed market (D)MNEs, engage in more post-acquisition hiring when acquiring foreign high-tech firms? Drawing on the concepts of ‘home base augmentation’ and ‘catching up by hiring’ and extending them to high-tech cross-border M&As, we argue that EMNEs use post-acquisition hiring to access knowledge and embed themselves in world leading innovation networks to build innovation related dynamic capabilities. Using a large, matched sample of cross-border acquisitions, we find that EMNE acquisitions are associated with significantly higher post-acquisition employment growth than DMNE acquisitions. This effect is especially strong when targets are located in developed market technological clusters. These findings suggest that employment growth is not merely a by-product of acquisition, but a deliberate strategy through which EMNEs develop technological capabilities.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102507"},"PeriodicalIF":6.1,"publicationDate":"2025-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145049119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-09DOI: 10.1016/j.ibusrev.2025.102508
Jifeng Yu , Dennis Duchon , Skylar Rolf
This study aims to better understand the role of firm age and foreign legal systems (FLSs) in firms’ location choices for foreign direct investment (FDI). Anchored in the institutional foundations of the OLI paradigm, our theoretical framework integrates insights from the literatures on regulations and organizational life cycles. We argue and find support for the idea that a firm’s reliance on public rule of law (ROL) perception varies with its life stage. We also find that the effect of public ROL perception on FDI location choice is moderated by two alternative sources of FLS knowledge (FLS experience and foreign partners). Our preliminary evidence suggests a possible learning advantage of adolescence.
{"title":"Navigating the uncertainty of foreign legal systems: An organizational life stage model","authors":"Jifeng Yu , Dennis Duchon , Skylar Rolf","doi":"10.1016/j.ibusrev.2025.102508","DOIUrl":"10.1016/j.ibusrev.2025.102508","url":null,"abstract":"<div><div>This study aims to better understand the role of firm age and foreign legal systems (FLSs) in firms’ location choices for foreign direct investment (FDI). Anchored in the institutional foundations of the OLI paradigm, our theoretical framework integrates insights from the literatures on regulations and organizational life cycles. We argue and find support for the idea that a firm’s reliance on public rule of law (ROL) perception varies with its life stage. We also find that the effect of public ROL perception on FDI location choice is moderated by two alternative sources of FLS knowledge (FLS experience and foreign partners). Our preliminary evidence suggests a possible learning advantage of adolescence.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102508"},"PeriodicalIF":6.1,"publicationDate":"2025-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145020473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines the impact of heterogeneity in legal origin between partners on the performance of Private Equity (PE) funds. Using a dataset of 3658 buyouts from 2000 to 2016, we show that internationalized PE partnerships, where Limited Partners (LPs) and General Partners (GPs) are from different legal systems, underperform compared to those within a single legal regime. We attribute this effect to challenges in contract enforcement and monitoring. Interestingly, while GP experience does not mitigate this negative effect, LP experience seems to intensify it, possibly due to overconfidence. We further find that funds with civil law GPs and common law LPs perform worse in terms of IRRs and MOIC, whereas the opposite combination only shows a decrease in MOIC. We explore potential explanations for these patterns, including the role of institutional differences, and discuss their implications for theories of PE internationalization and avenues for future research.
{"title":"Internationalization and Private Equity Partnerships: Legal Origin Heterogeneity and Fund Performance","authors":"Geoffrey Wood , Giorgos Papagiannakis , Marilou Ioakimidis , Jens Martin","doi":"10.1016/j.ibusrev.2025.102509","DOIUrl":"10.1016/j.ibusrev.2025.102509","url":null,"abstract":"<div><div>This study examines the impact of heterogeneity in legal origin between partners on the performance of Private Equity (PE) funds. Using a dataset of 3658 buyouts from 2000 to 2016, we show that internationalized PE partnerships, where Limited Partners (LPs) and General Partners (GPs) are from different legal systems, underperform compared to those within a single legal regime. We attribute this effect to challenges in contract enforcement and monitoring. Interestingly, while GP experience does not mitigate this negative effect, LP experience seems to intensify it, possibly due to overconfidence. We further find that funds with civil law GPs and common law LPs perform worse in terms of IRRs and MOIC, whereas the opposite combination only shows a decrease in MOIC. We explore potential explanations for these patterns, including the role of institutional differences, and discuss their implications for theories of PE internationalization and avenues for future research.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102509"},"PeriodicalIF":6.1,"publicationDate":"2025-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145004972","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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