| Relational Competence vs. Local Isomorphism: Strategic Choices of EMNEs in Advanced Economies |
Received:October 10, 2017 Revised:October 10, 2017 |
Key Words: Relational competence, local isomorphism, EMNEs, institutional distance, social capital, and Internationalization |
| Author Name | Affiliation | | Liang Wang | School of Management, University of San Francisco | | hongjuan zhang* | College of Management and Economics, Tianjin University | | Xiaohua Yang | School of Management, University of San Francisco | | Justin Tan | Schulich School of Business, York University |
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Abstract: |
| This study empirically examines how EMNEs act in advanced economies in order to answer the question of how EMNEs choose between network-centered strategy and market-centered strategy. We investigate the choices between local isomorphism following a market-centered strategy that is typical in the advanced economies, and relational competence following the home-grown network-centered strategies for EMNEs and find that (1) Chinese MNEs in the U.S. tend to utilize both relational competence and local isomorphism; (2) both strategies contribute positively to the subsidiary’s performance, and (3) relational competence helps EMNEs pursue local isomorphism. We conclude that relational competence and local isomorphism can both enhance the performance of the EMNEs’ subsidiaries in advanced economies, and building local relations may serve as an antecedent for local isomorphism. |
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