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The impact of home country institutions on new venture export: examining new ventures in transition economies

Mina Lee*, Xiaoli Yin, Seunghyun Lee, David H Weng, Michael Peng

*Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

How do home country institutions influence new ventures’ export strategy? As informed by the institution-based view, we argue that new ventures can use export to avoid the high costs of doing business in a home country with hostile institutions. Specifically, we argue that new ventures will export more when (1) their home countries have more government corruption problems, (2) managers have to spend more time with government officials for accessing public services, and (3) the proportion of ownership owned by foreign companies is high. Using a sample of 719 new ventures in 25 transition economies in Central and Eastern Europe (CEE), we find supportive results. We conclude that new ventures’ export strategy is tied to the costs of doing business in their home country institutions.
Original languageEnglish
Pages (from-to)823-848
JournalInternational Entrepreneurship and Management Journal
Volume11
Issue number4
Online published6 May 2014
DOIs
Publication statusPublished - Dec 2015

Bibliographical note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 16 - Peace, Justice and Strong Institutions
    SDG 16 Peace, Justice and Strong Institutions

Research Keywords

  • Central and Eastern Europe
  • Export
  • Institution-based view
  • New ventures
  • Transition economies

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