Do home institutions matter in explaining the path and speed of multinationality?
I must disagree with Mr. Peter Palms. I do think that 'home insititutions' affect the multinationality strategy of firms (in accordance with Porter) in advanced countries. But, actually, the same reasons can be applied to firms from emerging economies.
Just some examples: CEMEX, from Mexico. If the institutional situation in Mexican cement industry would have been different (i.e. Public sector acquistions, competition level in the Mexican industry, possibility of getting financial funds, ...) CEMEX international possibilities would have been quite more reduced.
Political situation, and linkages with the govenrment structure is pushing many Chinese firms to export or to invest abroad.
Thank you very much for your comments. I think that beside the factors related to industry, home institutions, in limiting competition, imperfect market restrictions, and specific transaction costs related to the institutional void may drive firms to different strategies: limited capabilities to compete in the global market, or to adopt escapism strategy, investing in other markets, where institutional environment can support the building of new capabilities and ownership advantages. In Brazil, we have different frameworks, as well escapism, as oriented strategy to growth in the global market.
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