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}
Pub Date : 2025-09-03DOI: 10.1016/j.ibusrev.2025.102506
Yingmin Wei , André Spithoven
Foreign direct investment (FDI) enables firms to leverage the extensive international networks of foreign investors, potentially gaining a competitive advantage over domestic-owned firms and assuming distinct roles in R&D cooperation. To explore the effect of foreign ownership on firms’ choice of R&D partners, this study focuses on two key dimensions of R&D cooperation—partners’ location and group membership—and two aspects of R&D networks—the breadth and depth. Partners’ location investigates the geographic proximity between cooperating partners, while a shared business group membership fits the concept of organizational proximity. Using the biennial R&D survey from 2001 to 2017 conducted in Belgium, we find that foreign-owned firms are more likely to engage in various configurations of R&D cooperation than domestic-owned firms and maintain more extensive R&D networks, with a particular preference for international and intra-group cooperation. The findings indicate that foreign ownership helps to transcend geographic proximity but constrains firms to organizational proximity in R&D cooperation, thus reshaping the R&D cooperation landscape for firms.
{"title":"Foreign ownership and R&D networks: Geographic and organizational proximity in R&D cooperation","authors":"Yingmin Wei , André Spithoven","doi":"10.1016/j.ibusrev.2025.102506","DOIUrl":"10.1016/j.ibusrev.2025.102506","url":null,"abstract":"<div><div>Foreign direct investment (FDI) enables firms to leverage the extensive international networks of foreign investors, potentially gaining a competitive advantage over domestic-owned firms and assuming distinct roles in R&D cooperation. To explore the effect of foreign ownership on firms’ choice of R&D partners, this study focuses on two key dimensions of R&D cooperation—partners’ location and group membership—and two aspects of R&D networks—the breadth and depth. Partners’ location investigates the geographic proximity between cooperating partners, while a shared business group membership fits the concept of organizational proximity. Using the biennial R&D survey from 2001 to 2017 conducted in Belgium, we find that foreign-owned firms are more likely to engage in various configurations of R&D cooperation than domestic-owned firms and maintain more extensive R&D networks, with a particular preference for international and intra-group cooperation. The findings indicate that foreign ownership helps to transcend geographic proximity but constrains firms to organizational proximity in R&D cooperation, thus reshaping the R&D cooperation landscape for firms.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102506"},"PeriodicalIF":6.1,"publicationDate":"2025-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144933699","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 : 2025-08-20DOI: 10.1016/j.ibusrev.2025.102505
Young Hoon An
This research article investigates the liability of foreignness confronting foreign firms operating in Africa and delineates strategies aimed at overcoming these challenges. While research to date have investigated the challenges experienced by firms in developed and emerging economies, our knowledge of liability of foreignness in weak and challenging environment is limited. The paper draws on in-depth interviews with executives, senior managers of sixteen multinational subsidiaries and local stakeholders in Cameroon to explore and explicate the different types of LOF that exist in Cameroon and the strategic responses in managing the liability of foreignness. Through empirical analysis, we uncover a spectrum of hurdles, and categorise different types of LOF; cognitive, normative and regulative. Facing these challenges, we find that MNE subsidiaries use Influence, Compromise and Avoid approaches to effectively mitigate the liabilities. The study contributes to both theoretical understanding and managerial practice, shedding light on the diverse challenges and actionable approaches for MNE subsidiaries in weak and challenging environments.
{"title":"Navigating liabilities of foreignness in weak and challenging institutional environments: Strategies of established multinational enterprise subsidiaries in Cameroon","authors":"Young Hoon An","doi":"10.1016/j.ibusrev.2025.102505","DOIUrl":"10.1016/j.ibusrev.2025.102505","url":null,"abstract":"<div><div>This research article investigates the liability of foreignness confronting foreign firms operating in Africa and delineates strategies aimed at overcoming these challenges. While research to date have investigated the challenges experienced by firms in developed and emerging economies, our knowledge of liability of foreignness in weak and challenging environment is limited. The paper draws on in-depth interviews with executives, senior managers of sixteen multinational subsidiaries and local stakeholders in Cameroon to explore and explicate the different types of LOF that exist in Cameroon and the strategic responses in managing the liability of foreignness. Through empirical analysis, we uncover a spectrum of hurdles, and categorise different types of LOF; cognitive, normative and regulative. Facing these challenges, we find that MNE subsidiaries use Influence, Compromise and Avoid approaches to effectively mitigate the liabilities. The study contributes to both theoretical understanding and managerial practice, shedding light on the diverse challenges and actionable approaches for MNE subsidiaries in weak and challenging environments.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102505"},"PeriodicalIF":6.1,"publicationDate":"2025-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144863910","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 : 2025-08-20DOI: 10.1016/j.ibusrev.2025.102504
Samia Belaounia, Ghassen Bouslama
This study examines how international expansion shapes firms’ capital structure decisions. Going beyond traditional measures of internationalization, our multidimensional perspective distinguishes between the scale of foreign operations (international intensity), the breadth of geographic engagement (regional dispersion), and the institutional distance between home and host countries. Drawing on co-insurance theory and organizational institutionalism, we argue that these dimensions interact to influence firms’ leverage decisions. Using panel data from 215 listed firms across 16 European countries (2010–2020), we find that internationalization is associated with lower long-term debt levels. This negative effect is especially pronounced when firms operate across multiple global regions or in institutionally distant environments. These findings suggest that the risks and coordination challenges associated with regional dispersion and institutional heterogeneity outweigh potential diversification benefits, prompting firms to adopt more conservative capital structures. To address endogeneity, we apply a system GMM estimator and visualize key interaction effects using average marginal effects. The results underscore that, when assessing the financial consequences of global expansion, both practitioners and scholars must consider the structural configuration of a firm’s international footprint, not merely its intensity.
{"title":"International intensity, regional dispersion, and institutional distance: How a multinational configuration shapes capital structure","authors":"Samia Belaounia, Ghassen Bouslama","doi":"10.1016/j.ibusrev.2025.102504","DOIUrl":"10.1016/j.ibusrev.2025.102504","url":null,"abstract":"<div><div>This study examines how international expansion shapes firms’ capital structure decisions. Going beyond traditional measures of internationalization, our multidimensional perspective distinguishes between the scale of foreign operations (international intensity), the breadth of geographic engagement (regional dispersion), and the institutional distance between home and host countries. Drawing on co-insurance theory and organizational institutionalism, we argue that these dimensions interact to influence firms’ leverage decisions. Using panel data from 215 listed firms across 16 European countries (2010–2020), we find that internationalization is associated with lower long-term debt levels. This negative effect is especially pronounced when firms operate across multiple global regions or in institutionally distant environments. These findings suggest that the risks and coordination challenges associated with regional dispersion and institutional heterogeneity outweigh potential diversification benefits, prompting firms to adopt more conservative capital structures. To address endogeneity, we apply a system GMM estimator and visualize key interaction effects using average marginal effects. The results underscore that, when assessing the financial consequences of global expansion, both practitioners and scholars must consider the structural configuration of a firm’s international footprint, not merely its intensity.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102504"},"PeriodicalIF":6.1,"publicationDate":"2025-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144863907","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 : 2025-08-15DOI: 10.1016/j.ibusrev.2025.102502
Yafei Hu , Yuanxu Li
Institutional (in)congruence between home and host countries plays an important role in cross-border mergers and acquisitions (M&As). Drawing upon prior research on the diversity strand from an institutional economics perspective, we explore the (in)congruence effects of both formal and informal institutions between home and host countries on the ownership level of cross-border M&As. Using a sample of 19352 deals in Belt and Road Initiative (BRI) countries in 2008–2020, we find empirical support for congruence and incongruence effects for both formal and informal institutions. Our research contributes to the institutional economics literature by introducing a typology of formal institutional congruence, formal institutional incongruence, informal institutional congruence, and informal institutional incongruence. It also contributes to the international business literature by highlighting the critical roles that both formal and informal institutional congruence between home and host countries play in determining the ownership percentage of cross-border M&As.
{"title":"Effects of institutional (in)congruence between home and host countries on the ownership level of cross-border M&As","authors":"Yafei Hu , Yuanxu Li","doi":"10.1016/j.ibusrev.2025.102502","DOIUrl":"10.1016/j.ibusrev.2025.102502","url":null,"abstract":"<div><div>Institutional (in)congruence between home and host countries plays an important role in cross-border mergers and acquisitions (M&As). Drawing upon prior research on the diversity strand from an institutional economics perspective, we explore the (in)congruence effects of both formal and informal institutions between home and host countries on the ownership level of cross-border M&As. Using a sample of 19352 deals in Belt and Road Initiative (BRI) countries in 2008–2020, we find empirical support for congruence and incongruence effects for both formal and informal institutions. Our research contributes to the institutional economics literature by introducing a typology of formal institutional congruence, formal institutional incongruence, informal institutional congruence, and informal institutional incongruence. It also contributes to the international business literature by highlighting the critical roles that both formal and informal institutional congruence between home and host countries play in determining the ownership percentage of cross-border M&As.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102502"},"PeriodicalIF":6.1,"publicationDate":"2025-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144841808","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 : 2025-08-14DOI: 10.1016/j.ibusrev.2025.102503
Lin Ma , Xuemei Bian
The role of country affect, particularly in comparison to cognitive country predispositions, in driving customer services evaluation and behavior is generally overlooked in the international services marketing literature. Taking the lens of the theory of impression formation in social psychology, the current research develops a nomological framework that clarifies whether and when affective country image (ACI) or cognitive country image (CCI) takes precedence for distinct aspects of customer-service provider relationships. Moving beyond the prevailing notion of the prominent influence of CCI, one field survey and two experimental studies reveal that ACI dominates CCI in determining service marketing outcomes in general and in driving relational compared to transactional outcomes in particular. Moreover, this research demonstrates the moderating effects of service type (experience vs. credence) and customer information processing style (intuitive vs. analytical) on the impacts of ACI and CCI. The findings yield concrete managerial guidance on how to apply strategies appealing to customers’ “heart” or “mind” more effectively in specific service contexts.
{"title":"Follow the mind or the heart? Asymmetric influences of affective versus cognitive country images on customer-service provider relationships","authors":"Lin Ma , Xuemei Bian","doi":"10.1016/j.ibusrev.2025.102503","DOIUrl":"10.1016/j.ibusrev.2025.102503","url":null,"abstract":"<div><div>The role of country affect, particularly in comparison to cognitive country predispositions, in driving customer services evaluation and behavior is generally overlooked in the international services marketing literature. Taking the lens of the theory of impression formation in social psychology, the current research develops a nomological framework that clarifies <em>whether</em> and <em>when</em> affective country image (ACI) or cognitive country image (CCI) takes precedence for distinct aspects of customer-service provider relationships. Moving beyond the prevailing notion of the prominent influence of CCI, one field survey and two experimental studies reveal that ACI dominates CCI in determining service marketing outcomes in general and in driving relational compared to transactional outcomes in particular. Moreover, this research demonstrates the moderating effects of service type (experience vs. credence) and customer information processing style (intuitive vs. analytical) on the impacts of ACI and CCI. The findings yield concrete managerial guidance on how to apply strategies appealing to customers’ “heart” or “mind” more effectively in specific service contexts.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102503"},"PeriodicalIF":6.1,"publicationDate":"2025-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144841807","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 : 2025-08-05DOI: 10.1016/j.ibusrev.2025.102489
Israa Kishk , Rekha Rao-Nicholson
Despite widespread academic consensus that firm ownership impacts internationalization, there is disagreement on which ownership type increases internationalization. Also, the risk differentials of internationalization strategies need to be considered: sales internationalization (a low-risk strategy) and asset internationalization (a high-risk strategy). Furthermore, home-country capitalism can moderate these relationships – a relationship unexamined in such research. Using a sample of US, Western European, and emerging-market firms, this paper addresses these research gaps. It examines how five different firm-ownership types (government, family, institutional, managerial, and corporate) and home-country capitalism influence internationalization strategies. We find that government ownership reduces sales internationalization. Family and institutional ownership increases sales internationalization, whereas institutional, managerial, and corporate ownership increases asset internationalization. Higher home-country capitalism reduces the impact of institutional and corporate owners on sales internationalization while increasing the impact of all five ownership types on asset internationalization. Our findings have implications for corporate governance and internationalization literature and practice.
{"title":"Corporate ownership types and internationalization strategies: The moderating role of home country capitalism","authors":"Israa Kishk , Rekha Rao-Nicholson","doi":"10.1016/j.ibusrev.2025.102489","DOIUrl":"10.1016/j.ibusrev.2025.102489","url":null,"abstract":"<div><div>Despite widespread academic consensus that firm ownership impacts internationalization, there is disagreement on which ownership type increases internationalization. Also, the risk differentials of internationalization strategies need to be considered: sales internationalization (a low-risk strategy) and asset internationalization (a high-risk strategy). Furthermore, home-country capitalism can moderate these relationships – a relationship unexamined in such research. Using a sample of US, Western European, and emerging-market firms, this paper addresses these research gaps. It examines how five different firm-ownership types (government, family, institutional, managerial, and corporate) and home-country capitalism influence internationalization strategies. We find that government ownership reduces sales internationalization. Family and institutional ownership increases sales internationalization, whereas institutional, managerial, and corporate ownership increases asset internationalization. Higher home-country capitalism reduces the impact of institutional and corporate owners on sales internationalization while increasing the impact of all five ownership types on asset internationalization. Our findings have implications for corporate governance and internationalization literature and practice.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102489"},"PeriodicalIF":6.1,"publicationDate":"2025-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144772862","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 : 2025-07-30DOI: 10.1016/j.ibusrev.2025.102500
Eduardo Polloni-Silva , Rosina Moreno , Herick Fernando Moralles
Research indicates that Foreign Direct Investment (FDI) can have both positive and negative effects on the host country's environment. However, the mechanisms underlying these contrasting outcomes remain unclear. This study investigates how the technological content of FDI influences the host region by analyzing regional data from the State of São Paulo, Brazil. In addition, drawing on insights from the institution-based view, the study considers the role of the origin of FDI and the institutional quality of the investors' home countries. The findings challenge the commonly applied ‘one-size-fits-all’ perspective on FDI. Both high- and low-technology investments can contribute to sustainable development in the host region. However, the source of the foreign investment plays a critical role: FDI from countries with weaker institutional frameworks can have harmful effects, regardless of the sector involved. These insights carry significant implications for policymakers and scholars, particularly in the context of emerging economies, suggesting that the assumed benefits of FDI warrant closer scrutiny.
{"title":"Technological content and institutional quality of FDI: Investigating the effects on the environment in Brazil","authors":"Eduardo Polloni-Silva , Rosina Moreno , Herick Fernando Moralles","doi":"10.1016/j.ibusrev.2025.102500","DOIUrl":"10.1016/j.ibusrev.2025.102500","url":null,"abstract":"<div><div>Research indicates that Foreign Direct Investment (FDI) can have both positive and negative effects on the host country's environment. However, the mechanisms underlying these contrasting outcomes remain unclear. This study investigates how the technological content of FDI influences the host region by analyzing regional data from the State of São Paulo, Brazil. In addition, drawing on insights from the institution-based view, the study considers the role of the origin of FDI and the institutional quality of the investors' home countries. The findings challenge the commonly applied ‘one-size-fits-all’ perspective on FDI. Both high- and low-technology investments can contribute to sustainable development in the host region. However, the source of the foreign investment plays a critical role: FDI from countries with weaker institutional frameworks can have harmful effects, regardless of the sector involved. These insights carry significant implications for policymakers and scholars, particularly in the context of emerging economies, suggesting that the assumed benefits of FDI warrant closer scrutiny.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102500"},"PeriodicalIF":6.1,"publicationDate":"2025-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144738861","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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