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

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 ex...

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Veröffentlicht in:Journal of management 2013-02, Vol.39 (2), p.531-566
Hauptverfasser: Holmes, R. Michael, Miller, Toyah, Hitt, Michael A., Salmador, M. Paz
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container_title Journal of management
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creator Holmes, R. Michael
Miller, Toyah
Hitt, Michael A.
Salmador, M. Paz
description 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.
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source PAIS Index; SAGE Journals Online
subjects Collectivism
Foreign direct investment
Foreign investment
Foreign investments
Globalization
Institutionalism
Interdisciplinary relations
Internationalization
Organizational behavior
Organizations
Political institutions
Regulation
Society
Studies
title The Interrelationships Among Informal Institutions, Formal Institutions, and Inward Foreign Direct Investment
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