Institutional Change and Internationalization Speed of Emerging Market Firms

Abstract

This study examines how the heterogeneity in pro-market reforms across emerging economies shapes the aggressive internationalization strategies of emerging market multinationals (EMNEs), specifically focusing on the speed of cross-border acquisitions (CBAs). Grounded in institutional theory, we argue that EMNEs' internationalization behaviors are deeply influenced by the evolving nature of their home countries' institutional environments. We explore the role of institutional change through three key dimensions of pro-market reform: scope, speed, and fragility. Our study proposes that EMNEs' efficiency in internationalizing aggressively varies across different stages of pro-market reform. Additionally, we argue that the dynamic attributes of reform, particularly the speed and fragility of institutional changes, further moderate EMNEs' internationalization processes. We provide nuanced insights into how institutional dynamics shape EMNEs' strategic responses, highlighting the importance of considering both reform's static and temporal dimensions. This study advances the understanding of EMNEs' internationalization by offering a more dynamic view of how firms navigate changing institutional environments in their pursuit of global competitiveness.

Biography

Dr. Sandeep Yadav is an Assistant Professor in the Strategy area at the Indian Institute of Management Bangalore (IIMB) and IIMB Young Faculty Research Chair. He holds a Ph.D. in Strategic Management from the Indian Institute of Management Kozhikode (IIMK). His research focuses on the internationalization of emerging market firms, time and speed in internationalization, and CSR in multinational firms. He is particularly interested in exploring the dynamics of institutional changes and emerging market firms’ internationalization. His research has been recognized in various conferences, such as the 2024 Rugman Most Promising Scholar Award Nomination at AIB 2024 Seoul, Best Paper award in the Internationalization and Global Strategy Track at the India Strategy Conference 2023, and SAJBS Editor's Best Paper Award at the Indian Academy of Management 2022 conference.