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The purpose of this study is to scrutinize the relationship between the founder’s control level over the startup and the startup’s board size on fundraising efficiency, in addition to examining how these factors are influenced by different resource combinations that the startup attracts.

A sample of 1356 firm-year observations is collected from both the startup database of Business Next Media Corp. in Taiwan and the Company Registration and Business Registration Database of Taiwan’s Ministry of Economic Affairs’ Department of Commerce. The panel data analytic approach with fixed effect is used for hypothesis testing.

The founder’s shareholding negatively correlates with fundraising efficiency; such a negative relationship can be alleviated by incorporating foreign investors. The board size positively correlates with fundraising efficiency; such a positive relationship can be mitigated by the inclusion of external corporate directors.

While a conventional understanding posits that startups with diverse, multiplex and symmetrical boards can rapidly construct a diverse alliance portfolio, henceforth always being beneficial to growth, this research challenges this notion by probing the possible adverse effects of having an excessive number of outside corporate directors on a startup’s fundraising efficiency.

The existing research on institutional distance implicitly posits the monotonic effect of contextual differences on the multinational enterprise (MNE) behaviors (e.g. entry mode, research and development (R&D) investment and subsidiary reverse knowledge transfer). Namely, MNEs from the same home to the same host countries are thought to have homogenous perceptions on the institutional influences and thus behave similarly. However, the authors argue that MNEs, due to their different performance aspirations in host countries, will have heterogenous perceptions on such contextual influences and thereafter behave differently.

Drawing on the behavioral theory of the firm and employing a unique sample comprised of 140 Chinese MNEs' foreign direct investments (FDIs) in Taiwan in 2017, the authors developed and tested the hypotheses.

The authors found that the emerging-market MNEs' (EMNEs’) perceptions of higher local institutional difficulties will be strengthened when their local performances are below their aspiration levels, making them more risk-taking. Nevertheless, EMNEs' local experiences and local equity-based partnerships will mitigate such negative perceptions, mitigating their risk-taking orientation.

The empirical findings make contributes to the international business (IB) literature by extending knowledge on the determinants and conditions of the heterogeneity in EMNEs' behavioral orientations when in face of the same institutional distance. The authors also provide managerial implications by showing that EMNEs' firm-specific resources (i.e. local experience and local equity-based partnership) will alter their perceptions of local institutional difficulties, leading to different behavioral orientations.

In response to the tilted emphasis on the corporate political activities and to the recent call for including the institutional perspective in the research of the MNE’s governmental relations (MGRs), this study aims to, departing from resource dependence theory, introduce the legitimacy formation as a bridging mechanism to MGRs to holistically examine the behavioral types of antecedents of MGRs in contingency with three critical contextual influences.

This study purposely chose a Taiwanese globalized logistic corporation that we have been acquainted with as the entry for collecting data. The study started the survey with the seven foreign subsidiaries of this logistic corporation and invited their customers through their personal referrals to join this survey. Following the snowball sampling, remarks were added in the questionnaire to request respondents’ assistance in inviting TMT members of different MNE subsidiaries in their personal networks to join the survey.

The findings from analyzing a survey data set of 155 MNE subsidiaries during 2016 show that the MNE’s economically-good behaviors are not so influential as Milton Friedman stated in 1962, and can only outperform socially-good and politically-good behaviors in shaping better MGRs under some specific contextual influences.

This study contributes to the international business literature by shedding new light on the sensitivity of behavioral antecedents of MGRs in contingency with contextual influences and provides managerial implications to MNE particularly when they expect to reduce external uncertainties or capturing opportunities by MGRs.