Home country institutions, social value orientation, and the internationalization of ventures. Issue 2 (April 2018)

• Record Type: Journal Article
• Authors: Chen, Jie; Saarenketo, Sami; Puumalainen, Kaisu
• Is Part Of: International business review. Volume 27:Issue 2(2018:Apr.)
• Page Start: 443
• Page End: 454
• Publication Date: 2018-04
• Subjects: Home country institutions -- Internationalization -- Social value orientation -- Cross-country -- Global Entrepreneurship Monitor; International business enterprises -- Periodicals; 338.8805
• DOI: 10.1016/j.ibusrev.2017.09.011
• Languages: English
• ISSNs: 0969-5931

Abstract

Highlights: The paper tested the home country institutions—likelihood of internationalization relationship in a cross-country context. The paper tested the moderating effects of the venture's social value orientation on the relationship for the first time. Besides the theoretical contributions, this paper also highlights the implications for both business researchers and policy makers. Abstract: We examined how home country formal institutions and the venture's value orientation influenced the venture's likelihood of internationalization based on a data set that was adapted from the Global Entrepreneurship Monitor (GEM) data in the year 2009, covering 7668 individual ventures in 25 countries. Better-developed home country formal institutions are found to have a supportive impact on the venture's likelihood of internationalization. The supportive impact is also found to be weaker for socially oriented ventures than for profit-oriented ventures. The venture's social value orientation negatively moderates the home country formal institutions–likelihood of internationalization relationship. The negative moderating effects can be explained as follows: Socially oriented ventures in the better-developed home country institutional environment are less likely to develop coping skills against uncertain and risky institutional environments, which are common in their host countries. Besides the theoretical contributions, this paper also highlights the implications for both business researchers and policy makers.