Three Essays on the Influence of Political Connections on Firm International Expansion Strategy

João Albino-Pimentel

doi:10.46697/001c.16856

Abstract

This article provides a summary of the three essays in my doctoral dissertation. It aims to show how each essay contributes to better understand how different types of political connections affect firms’ international expansion strategies and performance. The first essay examines how political connections moderate the relationship between host country attributes and international strategy. The second essay investigates how different types of political connections affect firm’s international investments size and riskiness. The third essay analyzes how political connections influence firms’ performance in project finance-based investments.

Highlights

The dissertation is composed of three essays, each contributing to address part of the puzzle regarding how political connections affect a firm’s international expansion strategy and performance
I examine the role of political connections as a moderator of the relationship between homehost ties and international strategy in a sample of greenfield investments in manufacturing undertaken by firms from eleven home countries
My results advance knowledge on how firms can benefit from their activities vis-à-vis the government in the home country to develop political capabilities that become useful in foreign countries, those characterized by a higher risk of expropriation (Delios & Henisz, 2003; García-Canal & Guillén, 2008; Holburn & Zelner, 2010)

Summary

Introduction

The dissertation is composed of three essays, each contributing to address part of the puzzle regarding how political connections affect a firm’s international expansion strategy and performance. I examine the role of political connections as a moderator of the relationship between homehost ties and international strategy in a sample of greenfield investments in manufacturing undertaken by firms from eleven home countries.

Results

Conclusion