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The impact of institutional distance and experiential knowledge on the internationalization speed of Japanese MNEs

Asian Business & Management volume 20, pages 549–582 (2021)Cite this article

Abstract

The internationalization speed of multinational enterprises (MNEs) can be measured in different ways and influenced by their extrinsic and intrinsic aspects. We analyze the influence of institutional distances and experiential knowledge on the internationalization speed of MNEs through subsidiaries. Based on a quantitative approach using data on 479 subsidiaries of Japanese MNEs, we highlight (i) the influence of institutional distance on internationalization speed, (ii) the moderation of experiential knowledge of the relationship between internationalization speed and institutional distance, and (iii) the positive effect on internationalization speed related to low international experience and high regulative and normative distances.

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Acknowledgements

We are grateful for the financial support provided by (i) FAPESP (São Paulo Research Foundation), “Auxílio à Participação em Evento no Exterior”, Process No. 2018/05414-1, (ii) AIB through its Doctoral Travel Stipends Program, granted by Sheth Foundation and individual contributors, (iii) Senac (São Paulo, Brazil), “Plano de Estímulo à Produção Científica e Desenvolvimento de Professores da Educação Superior”, and (iv) Program of Supporting the Formation of International Research Networks (Dean of Research and Graduate School – Stricto Sensu, ESPM São Paulo, Brazil). Moreover, we would like to thank all the anonymous reviewers of this manuscript and the audience of the 31st AJBS Annual Conference, held in Minneapolis in June 2018, for the valuable and insightful inputs. Finally, we also would like to thank the board of 15th SGBED (Society for Global Business & Economic Development), held in Beijing in June 2018, for the recognition granted for our study as the best paper award.

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  1. Universidade de São Paulo - FEAUSP, Avenida Prof. Luciano Gualberto, 908, Cidade Universitária, São Paulo, SP, Brazil

    Rachel Xenia Chang

  2. ESPM, Rua Dr. Álvaro Alvim, 123, Bloco C, Sala 402, Vila Mariana, São Paulo, SP, Brazil

    Mário Henrique Ogasavara

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  1. Rachel Xenia Chang
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Appendix

Appendix

See Tables 10, 11, and 12.

Table 10 Regulatory distance constructs, based on Powell and Rhee (2013)
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Table 11 Normative distance constructs, based on Powell and Rhee (2013)
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Table 12 Regulatory distance constructs, based on Powell and Rhee (2013)
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Chang, R.X., Ogasavara, M.H. The impact of institutional distance and experiential knowledge on the internationalization speed of Japanese MNEs. Asian Bus Manage 20, 549–582 (2021). https://doi.org/10.1057/s41291-019-00093-z

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Keywords

  • Internationalization speed
  • Regulative distance
  • Normative distance
  • Cultural-cognitive distance
  • Experiential knowledge
  • Regional experience