Goudarz Azar, Georgios Batsakis, Rian Drogendijk, Ashkan PakSeresht and Ruoqi Geng
In this research, we designed and implemented a unique vignette experiment to study the effect of managers' perceptions of institutional distance on foreign location choice, as…
Abstract
Purpose
In this research, we designed and implemented a unique vignette experiment to study the effect of managers' perceptions of institutional distance on foreign location choice, as well as the moderating effect of managerial international experience and preferred entry mode on this relationship.
Design/methodology/approach
We employ an experimental vignette methodology (EVM) approach applied in the context of Chinese managers to test the causal relationships depicted in our hypotheses. In this way, we measure the decision-makers' perceptions ex ante, i.e. in conjunction with and prior to a decision about a foreign location choice.
Findings
Our findings show that managers' ex-ante perceptions of institutional distance negatively affect decisions on foreign location choice. Also, we find that managerial international experience and preference for high commitment entry modes mitigate the negative effect of managers' perceptions of institutional distance on foreign location choice.
Originality/value
This research study adds to our understanding of the effect of managers' perceptions of institutional distance and managerial contingencies on foreign location decisions. Further, it advances novel experimental design in international business research in general and on foreign location choice in particular.
Details
Keywords
– This review investigates the extent and content of research into rural firm growth, and identifies and describes various approaches to studying firm growth.
Abstract
Purpose
This review investigates the extent and content of research into rural firm growth, and identifies and describes various approaches to studying firm growth.
Design/methodology/approach
The paper is guided by the systematic literature review framework which, combined with a qualitative assessment, ensures a rigorous review. An initial set of 200 peer reviewed articles was included in the review. During the quality assessment stage this set was reduced to 50 articles which were analysed in depth.
Findings
Three approaches to firm growth are identified and explored, focusing on the output, process and context of firm growth. The results further indicate increasing interest in rural firm growth and identify six themes constituting the research field.
Originality/value
Firm growth is advocated as a solution to development challenges, especially in rural settings. However, the firm growth literature is dominated by outcome-based research, often focused on technology-based businesses in dynamic urban regions, whose results are not easily transferable to rural contexts. This review contributes by mapping the current state of knowledge in the field, by articulating and discussing taken-for-granted assumptions with regard to firm growth and by identifying three approaches to firm growth, of which the context approach is the least common but which may prove valuable to further increase in the understanding of rural firm growth.