The purpose of this paper is to examine how home institutions moderate the influence of internationalization, and the effect this has on the performance of stock-listed Chinese firms.
A sample of 118 stock-listed Chinese firms over the period 2006-2011 was considered, using the panel data method.
The results show that foreign ownership and region-specific marketization help firms reap the performance benefits of internationalization, while state ownership plays an insignificant role.
The findings may not hold for unlisted firms, service firms or firms from other emerging economies.
The study suggests that Chinese managers should take advantage of home country institutions to improve the effects of internationalization on performance.
This research suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and also consider the home institutional factors that may facilitate or constrain the focal relationship.
Yan Chen thanks for financial support from National Natural Science Foundation of China (71273035; 71073087). Chengqi Wang acknowledges financial support from the Natural Science Foundation of China (No. 71373241).
Chen, Y., Zhai, R.-R., Wang, C. and Zhong, C. (2015), "Home institutions, internationalization and firm performance: Evidence from listed Chinese firms", Management Decision, Vol. 53 No. 1, pp. 160-178. https://doi.org/10.1108/MD-05-2014-0311
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