The moderating effect of state ownership on institutional distance and multilatinas subsidiaries performance

• Autor(a) principal: Burgos, Lisbeth Altagracia Valdez
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.8/5453
• topic: Institutional distance; Multilatinas; State ownership; Subsidiaries performance; Latin America; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Multinational firms from emerging countries have expanded significantly in recent years. Among them are the growing multinationals firms from Latin America, the so-called “Multilatinas”. The emergence and success of these firms have made this phenomenon a recent research topic. However, until so far, the studies regarding Multilatinas are limited, specifically those regarding the effect of institutional distance. Therefore, my conceptual model examines the effect of institutional distances (Political, Administrative and Cultural) between Multilatinas and their subsidiaries performance. At the same time, I examine how state ownership can moderate the effect of institutional differences and the performance of Multilatinas subsidiaries. I apply institutional theory within the performance literature specifically subsidiaries to analyze multinational firms from emerging economies. The hypotheses are empirically tested by analyzing a sample of 30 Multilatinas firms from six Latin American countries between the years 2016 and 2018. I provide empirical evidence for the effect of institutional distance on subsidiaries performance. On one hand, my results found a positive relationship between both political and administrative institutional distance and subsidiaries performance. On the other hand, the results suggest that state ownership does negatively moderates the relationship between political distance and foreign subsidiaries performance.