The effect of political and administrative distance on the choice of market entry mode : evidence from multinational enterprises in Algeria

Author

Aib, Hamza

Source

Revue Les Cahiers du POIDEX

Issue

Vol. 10, Issue 2 (31 Dec. 2021), pp.314-333, 20 p.

Publisher

Université Abdelhamid Ibn Badis-Mostaganem Faculté des Sciences Economiques Commerciales et des Sciences de Gestion

Publication Date

2021-12-31

Country of Publication

Algeria

No. of Pages

20

Main Subjects

Economy and Commerce

Topics

Abstract EN

This study examines the effect of political and administrative distance on the choice of MNEs market entry mode.

Drawing on institutional theory, we hypothesize that both political and administrative distance have a negative effect on the choice of FDI.

Using a sample of 87 MNEs listed in the 500 Global Fortunes, we find that administrative distance has a negative effect on the choice of FDI.

Our findings also show an insignificant relationship between political distance and the choice of market entry mode.

These findings enhance our understanding of MNEs choice between exporting and FDI to enter foreign markets and contribute to the development of institutional theory.

American Psychological Association (APA)

Aib, Hamza. 2021. The effect of political and administrative distance on the choice of market entry mode : evidence from multinational enterprises in Algeria. Revue Les Cahiers du POIDEX،Vol. 10, no. 2, pp.314-333.
https://search.emarefa.net/detail/BIM-1311542

Modern Language Association (MLA)

Aib, Hamza. The effect of political and administrative distance on the choice of market entry mode : evidence from multinational enterprises in Algeria. Revue Les Cahiers du POIDEX Vol. 10, no. 2 (2021), pp.314-333.
https://search.emarefa.net/detail/BIM-1311542

American Medical Association (AMA)

Aib, Hamza. The effect of political and administrative distance on the choice of market entry mode : evidence from multinational enterprises in Algeria. Revue Les Cahiers du POIDEX. 2021. Vol. 10, no. 2, pp.314-333.
https://search.emarefa.net/detail/BIM-1311542

Data Type

Journal Articles

Language

English

Notes

-

Record ID

BIM-1311542