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Advisor(s)
Abstract(s)
The composition of firms' foreign business networks has been attended to in recent research but has seldom been subjected to empirical study in
transition economies. In this study, we test hypotheses related to the composition of firms' foreign business relationships. First, we suggest that
firms' characteristics matter for building a network of ties the foreign agents. Then, we consider the moderating effect of the degree of
institutional development of the home country to assess to extent to which firms' foreign business relationships in transition economies are affected by
the institutional development. We conduct a set of logistic regressions and one OLS regression to investigate the composition of firms' business
relationships using firm-level data from 24 transition economies. The results indicate that firm size and membership in trade associations are good
predictors of foreign business relationships – specifically, relationships with foreign investors, customers, and suppliers - and also of the diversity of
foreign relationships. The country's institutional development radically changes which firms' characteristics matter in forming business relationships.
Description
Keywords
Transition economies Foreign relationships Institutional developement Types of ties
Pedagogical Context
Citation
FERREIRA, Manuel Portugal; LI, Dan; SERRA, Fernando Ribeiro - Firm characteristics and country institutional development: business relationships with foreign firms in transition economies. globADVANTAGE Working Paper. N.º 20 (2008), p. 1-38.
Publisher
Instituto Politécnico de Leiria. globADVANTAGE - Center of Research in International Business & Strategy