Influence of institutional environment on firms' internationalisation process: Evidence from SEE and CIS countries

Abstract

The objective of the Master thesis is to define influence of various components of institutional environment on degree of firm’s internationalization in the context of emerging markets. In order to achieve this goal existing studies, covering internationalization process, institutional-based view, peculiarities of emerging markets are analyzed. The empirical study confirms the influence of government, corruption, custom, court system and crime on degree of firm’s internationalization. The findings are interesting and have implications for managers and researchers. This study reveals fresh insights of corruption. Second, partial, but quite significant influence of institutional environment on firm’s international activity is highlighted, specifically in emerging markets due to dynamic changes and economic instability. As managerial implication, the results suggest that negative influence of some components could be prevented. Also results indicate that in many cases the influence appears not from institutions, but from managers’ perception and attitude. Finally, dynamic changes in emerging markets may help in development of firm’s competitive advantages.