Work

The effect of dynamic change in home-country institutions on emerging market firms’ speed of outward foreign direct investment

Year: 2026

Type: article

Abstract: Prior research on institutional dynamics has revealed the impact of institutional change on a firm’s internationalization decisions. We investigate institutional irregularity, which denotes the extremes of states of change in institutions. By integrating the dynamic institution-based view with the global factory framework, we examine the impact of COVID-19 institutions’ irregularity on the speed of an emerging market firm’s (EMF) first outward foreign direct investment (OFDI) after the pandemic’s outbreak, as well as the moderating effect of the EMF’s pre-pandemic OFDI scope. Our empirical tests of the first post-pandemic OFDI by EMFs reveal that home-country institutional irregularity accelerates firms’ post-pandemic OFDI, and that this effect is partially conditioned by the firm’s pre-pandemic OFDI scope.

Source: International Business Review

DOI: 10.1016/j.ibusrev.2026.102647

Authors: Ryan W. Tang, Peter J. Buckley

Institutions: Griffith University, University of Manchester

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $4,550