Impact of institutions on cross-border acquisitions and mergers by Latin American firms: a gravitational approach
Keywords:
Cross-border merger and acquisitions, Institutional distance, Formal institutional distance, Informal institutional distance, Latin America, Emerging marketsAbstract
PurposeThis study examines how institutions in both home and host countries affect firms’ cross-border mergers and acquisitions (CBM&As) activity in the six most significant Latin American (LATAM) economies (1995–2018).
Design/methodology/approachData from 1,094 transactions by LATAM companies were used to develop two data panels to examine the impact of institutions on CBM&A activity. Additionally, the influence of the target industry on CBM&A activity is explored. And to operationalize the independent variables, concepts from economic institutionalism are applied.
FindingsThe research findings indicate that the primary motive of acquirers for investing abroad is not to find better formal institutional conditions, but rather to pursue new markets. In contrast, the home country’s formal institutions motivate LATAM firms to invest overseas. Contrary to previously published studies, there is evidence of an inverted U-shaped relationship between institutional informal distance and CBM&A activity conducted by LATAM firms.
Originality/valueThis study analyzes the impact of the formal institutional quality of home and host countries as well as formal and informal institutional distances, on the accumulated value of CBM&As from LATAM. These relationships are underexplored in the literature. This study uses a large and representative sample of complete CBM&As in the region.
Downloads
References
Abdi, M. and Aulakh, P.S. (2012), “Do country-level institutional frameworks and interfirm governance arrangements substitute or complement in international business relationships?”, Journal of International Business Studies, Vol. 43 No. 5, pp. 477-497, doi: https://doi.org/10.1057/jibs.2012.11.
Abreo, C., Bustillo, R. and Rodriguez, C. (2022), “An empirical analysis of Colombia’s trade liberalization process and its effect on the equilibrium of its structural trade deficit”, Review of Development Economics, Vol. 26 No. 2, pp. 736-755, doi: https://doi.org/10.1111/rode.12860.
Aguilera, R.V., Ciravegna, L., Cuervo-Cazurra, A. and Gonzalez-Perez, M.A. (2017), “Multilatinas and the internationalization of Latin American firms”, Journal of World Business, Vol. 52 No. 4, pp. 447-460, doi: https://doi.org/10.1016/j.jwb.2017.05.006.
Aguinis, H., Villamor, I., Lazzarini, S.G., Vassolo, R.S., Amorós, J.E. and Allen, D.G. (2020), “Conducting management research in Latin America: why and what's in it for you?”, Journal of Management, Vol. 46 No. 5, pp. 615-636, doi: https://doi.org/10.1177/0149206320901581.
Ahern, K.R., Daminelli, D. and Fracassi, C. (2015), “Lost in translation? The effect of cultural values on mergers around the world”, Journal of Financial Economics, Vol. 117 No. 1, pp. 165-189, doi: https://doi.org/10.1016/j.jfineco.2012.08.006.
Alcaraz, J. and Zamilpa, J. (2017), “Latin American governments in the promotion of outward FDI”, Transnational Corporations, Vol. 24 No. 2, pp. 91-108, doi: https://doi.org/10.18356/d6db0eab-en.
Amal, M. and Tomio, B.T. (2015), “Institutional distance and brazilian outward foreign direct investment”, Management, Vol. 18 No. 1, pp. 78-101, doi: https://doi.org/10.3917/mana.181.0078.
Bailey, N. and Li, S. (2015), “Cross-national distance and FDI: the moderating role of host country local demand”, Journal of International Management, Vol. 21 No. 4, pp. 267-276, doi: https://doi.org/10.1016/j.intman.2014.11.002.
Barnard, H. and Luiz, J.M. (2018), “Escape FDI and the dynamics of a cumulative process of institutional misalignment and contestation: stress, strain and failure”, Journal of World Business, Vol. 53 No. 5, pp. 605-619, doi: https://doi.org/10.1016/j.jwb.2018.03.010.
Beugelsdijk, S., Pedersen, T. and Petersen, B. (2009), “Is there a trend towards global value chain specialization? — An examination of cross border sales of US foreign affiliates”, Journal of International Management, Vol. 15 No. 2, pp. 126-141, doi: https://doi.org/10.1016/j.intman.2008.08.002.
Bertrand, O., Mucchielli, J.L. and Zitouna, H. (2007), “Location choices of multinational firms: the case of mergers and acquisitions”, Journal of Economic Integration, Vol. 22 No. 1, pp. 181-209.
Beugelsdijk, S., Ambos, B. and Nell, P.C. (2018a), “Conceptualizing and measuring distance in international business research: recurring questions and best practice guidelines”, Journal of International Business Studies, Vol. 49 No. 9, pp. 1113-1137, doi: https://doi.org/10.1057/s41267-018-0182-4.
Beugelsdijk, S., Kostova, T., Kunst, V.E., Spadafora, E. and van Essen, M. (2018b), “Cultural distance and firm internationalization: a meta-analytical review and theoretical implications”, Journal of Management, Vol. 44 No. 1, pp. 89-130, doi: https://doi.org/10.1177/0149206317729027.
Boateng, A., Du, M., Wang, Y., Wang, C. and Ahammad, M.F. (2017), “Explaining the surge in M&A as an entry mode: home country and cultural influences”, International Marketing Review, Vol. 34 No. 1, pp. 87-108.
Boisot, M. and Meyer, M.W. (2008), “Which way through the open door? Reflections on the internationalization of Chinese firms”, Management and Organization Review, Vol. 4 No. 3, pp. 349-365, doi: https://doi.org/10.1111/j.1740-8784.2008.00116.x.
Brouthers, K.D. (2002), “Institutional, cultural and transaction cost influences on entry mode choice and performance”, Journal of International Business Studies, Vol. 33 No. 2, pp. 203-221, doi: https://doi.org/10.1057/palgrave.jibs.8491013.
Buckley, P.J. (2018), “Internalisation theory and outward direct investment by emerging market multinationals”, Management International Review, Vol. 58 No. 2, pp. 195-224, doi: https://doi.org/10.1007/s11575-017-0320-4.
Buckley, P.J., Yu, P., Liu, Q., Munjal, S. and Tao, P. (2016), “The institutional influence on the location Strategies of multinational enterprises from emerging economies: evidence from China's cross-border mergers and acquisitions”, Management and Organization Review, Vol. 12 No. 3, pp. 425-448, doi: https://doi.org/10.1017/mor.2016.21.
Buitrago, R.R.E. and Barbosa Camargo, M.I. (2020), “Home country institutions and outward FDI: an exploratory analysis in emerging economies”, Sustainability (Basel), Vol. 12 No. 23, 10010, doi: https://doi.org/10.3390/su122310010.
Buitrago, R.R.E., Rajasekar, J. and Alcaraz, J. (2023), “Soft Power in emerging economies: a partial least squares – structural equation modeling exploratory analysis of the effects on outward foreign direct investment”, International Area Studies Review, Vol. 26 No. 3, pp. 1-24, doi: https://doi.org/10.1177/22338659231152397.
Canh, N.P., Schinckus, C., Su, T.D. and Chong, F.H.L. (2021), “Institutional quality and risk in the banking system”, Journal of Economics, Finance and Administrative Science, Vol. 26 No. 51, pp. 22-40, doi: https://doi.org/10.1108/jefas-01-2020-0012.
Chakrabarti, R., Gupta-Mukherjee, S. and Jayaraman, N. (2009), “Mars–venus marriages: culture and cross-border M&A”, Journal of International Business Studies, Vol. 40, pp. 216-236.
Chen, S.-F.S. and Hennart, J.-F. (2004), “A hostage theory of joint ventures: why do Japanese investors choose partial over full acquisitions to enter the United States?”, Journal of Business Research, Vol. 57 No. 10, pp. 1126-1134, doi: https://doi.org/10.1016/s0148-2963(03)00041-9.
Cherchye, L. and Verriest, A. (2016), “The impact of home-country institutions and competition on firm profitability”, International Business Review, Vol. 25 No. 4, pp. 831-846, doi: https://doi.org/10.1016/j.ibusrev.2015.10.005.
Child, J. and Rodrigues, S.B. (2015), “The internationalization of Chinese firms: a case for theoretical extension?”, Management and Organization Review, Vol. 1 No. 3, pp. 381-410, doi: https://doi.org/10.1111/j.1740-8784.2005.0020a.x.
Choi, J.J., Lee, S.M. and Shoham, A. (2016), “The effects of institutional distance on FDI inflow: general environmental institutions (GEI) versus minority investor protection institutions (MIP)”, International Business Review, Vol. 25 No. 1, pp. 114-123.
Contractor, F.J. (2013), “‘Punching above their weight’ the sources of competitive advantage for emerging market multinationals”, International Journal of Emerging Markets, Vol. 8 No. 4, pp. 304-328, doi: https://doi.org/10.1108/ijoem-06-2013-0102.
Cortés, L.M., Durán, I.A., Gaitán, S. and Vasco, M. (2017a), “Mergers and acquisitions in Latin America: industrial productivity and corporate governance”, Emerging Markets Finance and Trade, Vol. 53 No. 10, pp. 2179-2198, doi: https://doi.org/10.1080/1540496x.2016.1258358.
Cortés, L.M., Agudelo, D.A. and Mongrut, S. (2017b), “Waves and determinants in mergers and acquisitions: the case of Latin America”, Emerging Markets Finance and Trade, Vol. 53 No. 7, pp. 1667-1690, doi: https://doi.org/10.1080/1540496x.2016.1262254.
Cortés, L.M., García, J.J. and Aristizábal López, B. (2018), “Fusiones y adquisiciones en América Latina: Un análisis de los factores macroeconómicos”, Ensayos Sobre Politica Economica, Vol. 86, pp. 178-192, doi: https://doi.org/10.32468/espe.8602.
Cuervo-Cazurra, A. (2008), “The multinationalization of developing country MNEs: the case of multilatinas”, Journal of International Management, Vol. 14 No. 2, pp. 138-154, doi: https://doi.org/10.1016/j.intman.2007.09.001.
Cuervo-Cazurra, A. and Genc, M. (2008), “Transforming disadvantages into advantages: developing-country MNEs in the least developed countries”, Journal of International Business Studies, Vol. 39 No. 6, pp. 957-979, doi: https://doi.org/10.1057/palgrave.jibs.8400390.
Cuervo-Cazurra, A., Luo, Y., Ramamurti, R. and Ang, S.H. (2018), “Impact of the home country on internationalization”, Journal of World Business, Vol. 53 No. 5, pp. 593-604, doi: https://doi.org/10.1016/j.jwb.2018.06.002.
Danakol, S.H., Estrin, S., Reynolds, P. and Weitzel, U. (2017), “Foreign direct investment via M&A and domestic entrepreneurship: blessing or curse?”, Small Business Economics, Vol. 48 No. 3, pp. 599-612.
Deng, P. and Yang, M. (2015), “Cross-border mergers and acquisitions by emerging market firms: a comparative investigation”, International Business Review, Vol. 24 No. 1, pp. 157-172, doi: https://doi.org/10.1016/j.ibusrev.2014.07.005.
Depperu, D., Galavotti, I. and Baraldi, F. (2022), “Institutional distance and cross-border acquisitions into emerging markets: the moderating effect of context experience”, International Journal of Emerging Markets, Vol. 19 No. 5, pp. 1746-8809, doi: https://doi.org/10.1108/IJOEM-12-2021-1897.
Di Guardo, M.C., Marrocu, E. and Paci, R. (2016), “The concurrent impact of cultural, political, and spatial distances on international mergers and acquisitions”, The World Economy, Vol. 39 No. 6, pp. 824-852, doi: https://doi.org/10.1111/twec.12275.
Dikova, D., Sahib, P.R. and van Witteloostuijn, A. (2010), “Cross-border acquisition abandonment and completion: the effect of institutional differences and organizational learning in the international business service industry, 1981–2001”, Journal of International Business Studies, Vol. 41, pp. 223-245.
Dikova, D. and Witteloostuijn, A.v. (2007), “Foreign direct investment mode choice: entry and establishment modes in transition economies”, Journal of International Business Studies, Vol. 38 No. 6, pp. 1013-1033, doi: https://doi.org/10.1057/palgrave.jibs.8400297.
Dunning, J.H. and Lundan, S.M. (2008), Multinational Enterprises and the Global Economy, (2nd ed.), Edward Elgar, Cheltenham.
Eden, L. and Miller, S. (2004), “Distance matters: liability of foreignness, institutional distance, and ownership strategy”, in Hitt, M.a.C.J. (Ed.), Theories of the Multinational Enterprise: Diversity, Complexity and Relevance, Emerald Group Publishing, Bingley, pp. 187-221.
EMIS (2025), “Mergers and acquisitions - yearly data”, online, available at: https://www.emis.com (accessed July 2020).
Enderwick, P. and Buckley, P.J. (2021), “The role of springboarding in economic catch-up: a theoretical perspective”, Journal of International Management, Vol. 27 No. 3, 100832, doi: https://doi.org/10.1016/j.intman.2021.100832.
Ermolaeva, L. (2019), “M&A deals completion and abandonment by Russian MNE”, International Journal of Emerging Markets, Vol. 14 No. 3, pp. 475-494.
Fainshmidt, S., Judge, W.Q., Aguilera, R.V. and Smith, A. (2018), “Varieties of institutional systems: a contextual taxonomy of understudied countries”, Journal of World Business, Vol. 53 No. 3, pp. 307-322, doi: https://doi.org/10.1016/j.jwb.2016.05.003.
Falahat, M., Lee, Y.Y., Ramayah, T. and Soto-Acosta, P. (2020), “Modelling the effects of institutional support and international knowledge on competitive capabilities and international performance: evidence from an emerging economy”, Journal of International Management, Vol. 26 No. 4, 100779, doi: https://doi.org/10.1016/j.intman.2020.100779.
Fan, J.P.H., Huang, J., Oberholzer‐Gee, F., Smith, T.D. and Zhao, M. (2008), “Diversification of Chinese companies: an international comparison”, Chinese Management Studies, Vol. 2 No. 1, pp. 6-13, doi: https://doi.org/10.1108/17506140810866223.
Fleury, A. and Leme Fleury, M.T. (2014), “Country of origin effects on internationalization: insights from Brazil”, in Cuervo-Cazurra, A. and Ramamurti, R. (Eds), Understanding Multinationals from Emerging Markets, Cambridge University Press, Cambridge, pp. 242-268.
Gaur, A.S. and Lu, J.W. (2007), “Ownership strategies and survival of foreign subsidiaries: impacts of institutional distance and experience”, Journal of Management, Vol. 33 No. 1, pp. 84-110, doi: https://doi.org/10.1177/0149206306295203.
Ghemawat, P. (2001), “Distance still matters: the hard reality of global expansion”, Harvard Business Review, Vol. 79 No. 8, pp. 137-147.
Goddard, J., Molyneux, P. and Zhou, T. (2012), “Bank mergers and acquisitions in emerging markets: evidence from Asia and Latin America”, The European Journal of Finance, Vol. 18 No. 5, pp. 419-438, doi: https://doi.org/10.1080/1351847x.2011.601668.
Greene, W.H. (2018), Econometric Analysis, Pearson Education, New York.
Gugler, K., Mueller, D.C. and Weichselbaumer, M. (2012), “The determinants of merger waves: an international perspective”, International Journal of Industrial Organization, Vol. 30, pp. 1-15, doi: https://doi.org/10.1016/j.ijindorg.2011.04.006.
Hermans, M. and Borda Reyes, A. (2020), “A value creation perspective on international business in Latin America: directions for differentiation between emerging market multinationals”, Multinational Business Review, Vol. 28 No. 2, pp. 157-175, doi: https://doi.org/10.1108/mbr-03-2020-0058.
Hofstede, G. (1980), Culture's Consequences: International Differences in Work-Related Values, Sage, Beverly Hills CA.
Hyun, H. and Kim, H.H. (2010), “The determinants of cross-border M&As: the role of institutions and financial development in the gravity model”, The World Economy, Vol. 33 No. 2, pp. 292-310.
Inkpen, A.C. and Tsang, E.W.K. (2005), “Social capital, networks, and knowledge transfer”, Academy of Management Review, Vol. 30 No. 1, pp. 146-165, doi: https://doi.org/10.5465/amr.2005.15281445.
Kat, Q.B. (2023), “Competitive liberalization, postneoliberalism, and hegemony: the case of the US-Peru free trade agreement”, Latin American Politics and Society, Vol. 65 No. 1, pp. 126-150, doi: https://doi.org/10.1017/lap.2022.33.
Kaufmann, D., Kraay, A. and Mastruzzi, M. (2010), “The worldwide governance indicators: a summary of methodology, data and analytical issues”, World Bank Policy Research Working Paper, No. 5430.
Khanna, T. and Palepu, K.G. (1997), “Why focused strategies may be wrong for emerging markets”, Harvard Business Review, Vol. July/August, pp. 41-51.
Konara, P. and Mohr, A. (2019), “Why we should stop using the Kogut and Singh index”, Management International Review, Vol. 59 No. 3, pp. 335-354, doi: https://doi.org/10.1007/s11575-019-00378-7.
Kostova, T. (1996), Success of the Transnational Transfer of Organizational Practices within Multinational Companies, University of Minnesota, Minneapolis.
Kostova, T., Beugelsdijk, S., Scott, W.R., Kunst, V.E., Chua, C.H. and van Essen, M. (2020), “The construct of institutional distance through the lens of different institutional perspectives: review, analysis, and recommendations”, Journal of International Business Studies, Vol. 51 No. 4, pp. 467-497, doi: https://doi.org/10.1057/s41267-019-00294-w.
Krug, J. and Falaster, C.D. (2022), “The interplay between home and host institutions on CBA ownership decision”, Thunderbird International Business Review, Vol. 65 No. 3, pp. 373-387, doi: https://doi.org/10.1002/tie.22303.
Kukreja, S., Maheshwari, G.C. and Singh, A. (2023), “Interplay of cross-country distance with cross-border M&A performance: an institutional perspective”, Review of International Business and Strategy, Vol. 34 No. 1, pp. 24-39.
Kumar, B.R. (2018), “Mergers and acquisitions by anheuser-busch InBev”, in Wealth Creation in the World's Largest Mergers and Acquisitions, Springer, Cham, pp. 69-77.
Lankhuizen, M.B.M. and de Groot, H.L.F. (2016), “Cultural distance and international trade: a non-linear relationship”, Letters in Spatial and Resource Sciences, Vol. 9 No. 1, pp. 19-25, doi: https://doi.org/10.1007/s12076-014-0129-8.
Lebedev, S., Peng, M.W., Xie, E. and Stevens, C.E. (2015), “Mergers and acquisitions in and out of emerging economies”, Journal of World Business, Vol. 50 No. 4, pp. 651-662, doi: https://doi.org/10.1016/j.jwb.2014.09.003.
Li, W., Wang, C., Ren, Q. and Zhao, D. (2020), “Institutional distance and cross-border M&A performance: a dynamic perspective”, Journal of International Financial Markets, Institutions and Money, Vol. 66, 101207.
Liou, R.-S., Chao, M.C.-H. and Yang, M. (2016), “Emerging economies and institutional quality: assessing the differential effects of institutional distances on ownership strategy”, Journal of World Business, Vol. 51 No. 4, pp. 600-611, doi: https://doi.org/10.1016/j.jwb.2016.03.001.
Lozada, J.M., Cortes, L.M. and Velasquez-Gaviria, D. (2022), “The stock market reaction to mergers and acquisitions: evidence from the banking industry”, Latin American Business Review, Vol. 23 No. 3, pp. 255-278, doi: https://doi.org/10.1080/10978526.2021.1939041.
Malhotra, S., Sivakumar, K. and Zhu, P. (2011), “A comparative analysis of the role of national culture on foreign market acquisitions by U.S. firms and firms from emerging countries”, Journal of Business Research, Vol. 64 No. 7, pp. 714-722, doi: https://doi.org/10.1016/j.jbusres.2010.08.003.
Martinez, J.I. and Jarillo, J.C. (1989), “The evolution of research on coordination mechanisms in multinational corporations”, Journal of International Business Studies, Vol. 20 No. 3, pp. 489-514, doi: https://doi.org/10.1057/palgrave.jibs.8490370.
Mayer, T. and Zignago, S. (2011), “Notes on CEPII’s distances measures: the GeoDist Database”, CEPII Working Paper, Vol. 2011-25, available at: https://www.cepii.fr/pdf_pub/wp/2011/wp2011-25.pdf
Meyer, K.E. and Grosse, R. (2019), “Introduction to managing in emerging markets”, in Grosse, R. and Meyer, K.E. (Eds), The Oxford Handbook of Management in Emerging Markets, Oxford University Press, New York, NY, pp. 3-34.
Meyer, K.E. and Peng, M.W. (2005), “Probing theoretically into central and eastern europe: transactions, resources, and institutions”, Journal of International Business Studies, Vol. 36 No. 6, pp. 600-621, doi: https://doi.org/10.1057/palgrave.jibs.8400167.
Mondolo, J. (2019), “How do informal institutions influence inward FDI? A systematic review”, Economia Politica, Vol. 36 No. 1, pp. 167-204, doi: https://doi.org/10.1007/s40888-018-0119-1.
Nielsen, B.B., Asmussen, C.G. and Weatherall, C.D. (2017), “Location choice of foreign direct investments: empirical evidence and challenges”, Journal of World Business, Vol. 52 No. 1, pp. 62-82, doi: https://doi.org/10.1016/j.jwb.2016.10.006.
North, D. (1990), Institutions, Institutional Change and Economic Performance, Cambridge University Press, Cambridge.
Pablo, E. (2013), “Cross-border diversification through M&As in Latin America”, Journal of Business Research, Vol. 66, pp. 425-430.
Pandey, V., Steigner, T. and Sutton, N.K. (2023), “The value of economic freedom in cross-border mergers”, International Review of Economics and Finance, Vol. 86, pp. 540-563, doi: https://doi.org/10.1016/j.iref.2023.04.002.
Papageorgiadis, N., McDonald, F., Wang, C. and Konara, P. (2020), “The characteristics of intellectual property rights regimes: how formal and informal institutions affect outward FDI location”, International Business Review, Vol. 29 No. 1, 101620, doi: https://doi.org/10.1016/j.ibusrev.2019.101620.
Paul, J. and Benito, G.R.G. (2018), “A review of research on outward foreign direct investment from emerging countries, including China: what do we know, how do we know and where should we be heading?”, Asia Pacific Business Review, Vol. 24 No. 1, pp. 90-115, doi: https://doi.org/10.1080/13602381.2017.1357316.
Peng, M.W., Sun, S.L., Pinkham, B. and Chen, H. (2009), “The institution-based view as a third leg for a strategy tripod”, Academy of Management Perspectives, Vol. 23 No. 3, pp. 63-81, doi: https://doi.org/10.5465/amp.2009.43479264.
Pinto, C.F., Ferreira, M.P., Falaster, C., Fleury, M.T.L. and Fleury, A. (2017), “Ownership in cross-border acquisitions and the role of government support”, Journal of World Business, Vol. 52 No. 4, pp. 533-545, doi: https://doi.org/10.1016/j.jwb.2016.08.004.
Putnam, R., Leonardi, R. and Nanetti, R.Y. (1993), Making Democracy Work, Princeton University Press, Princeton NJ.
Ramamurti, R. (2012), “What is really different about emerging market multinationals?”, Global Strategy Journal, Vol. 2 No. 1, pp. 41-47, doi: https://doi.org/10.1002/gsj.1025.
Reddy, R.K., Fabian, F. and Park, S.-J. (2022), “Whether, how and why home country environments influence emerging market firm acquisition behavior”, International Journal of Emerging Markets, Vol. 18 No. 12, pp. 5818-5839, doi: https://doi.org/10.1108/ijoem-08-2021-1274.
Rossi, S. and Volpin, P.F. (2004), “Cross-country determinants of mergers and acquisitions”, Journal of Financial Economics, Vol. 74 No. 2, pp. 277-304, doi: https://doi.org/10.1016/j.jfineco.2003.10.001.
Scott, W.R. (1995), Institutions and Organizations, Sage, Thousand Oaks, CA.
Sengupta, A.S., Kleindienst, I. and Hutzschenreuter, T. (2023), “Heterogenous internationalization processes of emerging economy MNEs: a review and research agenda”, Journal of International Management, Vol. 29 No. 3, 101032, doi: https://doi.org/10.1016/j.intman.2023.101032.
Seyoum, B. (2009), “Formal institutions and foreign direct investment”, Thunderbird International Business Review, Vol. 51 No. 2, pp. 165-181, doi: https://doi.org/10.1002/tie.20256.
Silva-Rêgo, B.F. and Figueira, A.R. (2019), “New institutional economics: contributions to international business studies”, International Journal of Emerging Markets, Vol. 14 No. 5, pp. 1102-1123, doi: https://doi.org/10.1108/ijoem-07-2018-0372.
Slesman, L., Baharumshah, A.Z. and Wohar, M.E. (2015), “Capital inflows and economic growth: does the role of institutions matter?”, International Journal of Finance and Economics, Vol. 20 No. 3, pp. 253-275, doi: https://doi.org/10.1002/ijfe.1514.
Solano, J., Camino-Mogro, S. and Armijos-Bravo, G. (2020), “Intra-banking competition in Ecuador: new evidence using panel data approach”, Journal of Economics, Finance and Administrative Science, Vol. 25 No. 50, pp. 295-319, doi: https://doi.org/10.1108/jefas-05-2019-0081.
Soleimani, A. and Yang, K.M. (2022), “Overcoming institutional challenges in cross-border acquisitions: how home- and host-country acquisition experiences shorten the deal completion phase”, Multinational Business Review, Vol. 30 No. 3, pp. 410-433, doi: https://doi.org/10.1108/mbr-03-2021-0024.
Stal, E. and Cuervo-Cazurra, A. (2011), “The investment development path and FDI from developing countries: the role of pro-market reforms and institutional voids”, Latin American Business Review, Vol. 12 No. 3, pp. 209-231, doi: https://doi.org/10.1080/10978526.2011.614174.
Stoian, C. and Mohr, A. (2016), “Outward foreign direct investment from emerging economies: escaping home country regulative voids”, International Business Review, Vol. 25 No. 5, pp. 1124-1135, doi: https://doi.org/10.1016/j.ibusrev.2016.02.004.
Takyi, L.N., Naidoo, V., Dogbe, C.S.K. and Akoto, E. (2022), “Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms' degree of internationalization”, Review of International Business and Strategy, Vol. 33 No. 3, pp. 517-532, doi: https://doi.org/10.1108/ribs-01-2022-0001.
Treviño, L.J. and Mixon, F.G.J. (2004), “Strategic factors affecting foreign direct investment decisions by multi-national enterprises in Latin America”, Journal of World Business, Vol. 39 No. 3, pp. 233-243, doi: https://doi.org/10.1016/j.jwb.2004.04.003.
Trevino, L.J., Mixon, F.G.J. and Upadhyaya, K.P. (2005), “Building institutions and foreign direct investment in Latin America”, Latin American Business Review, Vol. 6 No. 2, pp. 1-181, doi: https://doi.org/10.1300/j140v06n02_01.
Vasco, M., Cortés, L.M., Gaitán, S. and Durán, I.A. (2014), “Fusiones y adquisiciones en Latinoamérica, gobierno corporativo y modelo gravitacional”, Journal of Economics, Finance and Administrative Science, Vol. 19 No. 37, pp. 108-117, doi: https://doi.org/10.1016/j.jefas.2014.10.003.
Williamson, O.E. (1985a), “Reflections on the new institutional economics”, Journal of Institutional and Theoretical Economics, Vol. 141 No. 1, pp. 187-195.
Williamson, O. (1985b), The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, Free Press, New York.
Williamson, O.E. (1998), “Transaction cost economics: how it works; where it is headed”, Economist, Vol. 146 No. 1, pp. 23-58, doi: https://doi.org/10.1023/a:1003263908567.
Xie, E., Reddy, K.S. and Liang, J. (2017), “Country-specific determinants of cross-border mergers and acquisitions: a comprehensive review and future research directions”, Journal of World Business, Vol. 52 No. 2, pp. 127-183, doi: https://doi.org/10.1016/j.jwb.2016.12.005.
Yan, H., Hu, X. and Liu, Y. (2020), “The international market selection of Chinese SMEs: how institutional influence overrides psychic distance”, International Business Review, Vol. 29 No. 4, 101703, doi: https://doi.org/10.1016/j.ibusrev.2020.101703.
Zaheer, S. (1995), “Overcoming the liability of foreignness”, Academy of Management Journal, Vol. 38 No. 2, pp. 341-363, doi: https://doi.org/10.2307/256683.
Zimmerman, M.A. and Zeitz, G.J. (2002), “Beyond survival: achieving new venture growth by building legitimacy”, Academy of Management Review, Vol. 27 No. 3, pp. 414-431, doi: https://doi.org/10.2307/4134387.
Zou, T., Ertug, G., Cuypers, I.R.P. and Ferrin, D.L. (2023), “Trust across borders: a review of the research on interorganizational trust in international business”, Journal of International Business Studies, Vol. 54 No. 8, pp. 1379-1401, doi: https://doi.org/10.1057/s41267-023-00648-5.
