Overcoming institutional voids via arbitration
MetadataShow full item record
Extending the literature on institutional voids, we introduce theory from law that highlights the ability of firms to choose the laws and enforcement mechanisms that govern their international joint ventures (IJVs). Specifically, firms may overcome institutional voids by borrowing institutions via binding international commercial arbitration (BICA) rather than relying on host-market institutions. Leveraging an institution-based view, we develop a theoretical framework to articulate the conditions under which IJV partners may choose BICA as opposed to domestic courts to overcome institutional voids in host markets.
Showing items related by title, author, creator and subject.
Mancini, Francesco; Glusac, Tanja (2018)The history of built environment reflects the rise and fall of political systems, their conflicts, the social contradictions and ultimately, the state of being of a particular civic society over time. Former symbols of ...
Su, W.; Peng, Mike; Tan, W.; Cheung, Y. (2016)What signals do firms in emerging economies send to stakeholders when they adopt corporate social responsibility (CSR) practices? We argue that in emerging economies, firms that adopt CSR practices positively signal ...
Autonomy delegation to foreign subsidiaries: An enabling mechanism for emerging-market multinationalsWang, S.; Luo, Yadong; Lu, X.; Sun, J.; Maksimov, V. (2014)Current theory on foreign subsidiary autonomy is insufficient to examine a situation where a multinational lacks experience to organize global operations, and yet intends to compete extensively with established multinational ...