The Influence of Institutional Complexity on the Internationalization Plans of Corporations from Emerging Markets

Yuqin Bi

doi:10.6981/FEM.202503_6(3).0013

Authors

Yuqin Bi

DOI:

https://doi.org/10.6981/FEM.202503_6(3).0013

Keywords:

Institutional Complexity; Institutional Restrictions; Firms in Emerging Economies; Exports.

Abstract

The internationalization practices of corporations in emerging economies challenge traditional perspectives, prompting a steady refinement of institutional complexity theory in recent years to elucidate the export-oriented internationalization behavior of these enterprises. Institutional complexity occurs when many institutional logics conflict inside the institutional context, prompting enterprises to exhibit diverse behaviors in the face of institutional limitations. The absorption effect and the statute effect show that institutional complexity and firms' desire to export are linked in a way that looks like an upside-down U. As the institutional complexity of the home environment diminishes, firms adopting avoidance-oriented export strategies are more likely to pursue expansion in international markets rather than compete domestically.

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