Defying isomorphism in foreign-location choice: The role of business group-level international experience in Korean MNCs

Abstract

This study contributes to our understanding of how institutions shape the internationalization processes of Asian multinational corporations (MNCs). I explore how business-group affiliation affects the ability of MNCs to escape isomorphic pressures in overseas location choices. From a sample of Korean MNCs, I find that this ability increases with the levels of firm-specific advantages and international experience held by the respective MNC and that international experience within the same business group of the MNC also mediates this ability. This article contributes to the institution-based view of international strategy and business by identifying mechanism through which business-group affiliation, a common characteristic of Asian business systems, affects MNC decision making.