The role of informal institutions in the internationalization process of Chinese and Russian firms

Abstract

The paper provides the review of the role of informal institutions in two emerging market contexts, China and Russia, and identifies its influence on firms’ internationalization process. In the process of internationalization, Chinese and Russian firms have always been affected by their informal institutions. Informal institutions in Chinese and Russian context affect overseas operations such as production, sales, and service of the companies. The research claims that informal institutions such as values, ethics, and habits influence Chinese and Russian firms the process of internationalization in Russia and China but operate differently depending on the context that can be explained by a country specifics. By analyzing and comparing the influence of informal institutions on firm’s internationalization in researched countries, we re-evaluate its impact in emerging market countries.