Work

The Interrelationships Among Informal Institutions, Formal Institutions, and Inward Foreign Direct Investment

Year: 2011

Type: article

Abstract: This research contributes to institutional theory by examining the influence of informal institutions on formal institutions and the effects of formal institutions on inward foreign direct investment. In particular, the authors integrate prior research from multiple disciplines to identify and to examine the roles of a country’s formal regulatory, political, and economic institutions. The results suggest that the country’s informal institutions, in the form of the cultural dimensions of collectivism and future orientation, shape the country’s formal institutions. In turn, each of the three formal institutions affects the country’s level of inward foreign direct investment differently. To facilitate future research, the authors also provide a set of measures for formal institutions in 50 countries.

Source: Journal of Management

DOI: 10.1177/0149206310393503

Authors: R. Michael Holmes, Toyah Miller, Michael A. Hitt, M. Paz Salmador

Institutions: Florida State University, Indiana University, Texas A&M University, Universidad Autónoma de Madrid

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2136302687

FWCI: 39.13

Cites: 200

Cited by: 540

Related to: 10