When Political Instability Devaluates Home-host Ties

Caroline  Witte; Martijn J. Burger; Enrico Pennings

doi:10.1016/j.jwb.2020.101077

When Political Instability Devaluates Home-host Ties

Caroline Witte, Martijn J. Burger, Enrico Pennings

Institut for Strategi og Innovation

Erasmus Universiteit Rotterdam

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Abstrakt

This study aims to shed light on how the value of home-host ties is contingent on political instability (i.e., political conflict and major institutional transitions). We hypothesize that by increasing the risk within the institutional structure, small political conflict positively moderates the relationship between home-host ties and location attractiveness, whereas full-fledged wars, in which risk to the institutional structure dominates erode the value of ties. Examining location choice decisions in Sub-Saharan Africa, we find evidence that home-host ties are not affected by small political conflict, while wars and major institutional transitions devaluate home-host ties.

Originalsprog	Engelsk
Artikelnummer	101077
Tidsskrift	Journal of World Business
Vol/bind	55
Udgave nummer	4
Antal sider	18
ISSN	1090-9516
DOI	https://doi.org/10.1016/j.jwb.2020.101077
Status	Udgivet - jun. 2020

Emneord

Foreign direct investment
Home-host ties
Political instability
Political conflict
Institutional change
Political risk

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10.1016/j.jwb.2020.101077Licens: Ikke-specificeret

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Citationsformater

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title = "When Political Instability Devaluates Home-host Ties",

abstract = "This study aims to shed light on how the value of home-host ties is contingent on political instability (i.e., political conflict and major institutional transitions). We hypothesize that by increasing the risk within the institutional structure, small political conflict positively moderates the relationship between home-host ties and location attractiveness, whereas full-fledged wars, in which risk to the institutional structure dominates erode the value of ties. Examining location choice decisions in Sub-Saharan Africa, we find evidence that home-host ties are not affected by small political conflict, while wars and major institutional transitions devaluate home-host ties.",

keywords = "Foreign direct investment, Home-host ties, Political instability, Political conflict, Institutional change, Political risk, Foreign direct investment, Home-host ties, Political instability, Political conflict, Institutional change, Political risk",

author = "Caroline Witte and Burger, {Martijn J.} and Enrico Pennings",

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N2 - This study aims to shed light on how the value of home-host ties is contingent on political instability (i.e., political conflict and major institutional transitions). We hypothesize that by increasing the risk within the institutional structure, small political conflict positively moderates the relationship between home-host ties and location attractiveness, whereas full-fledged wars, in which risk to the institutional structure dominates erode the value of ties. Examining location choice decisions in Sub-Saharan Africa, we find evidence that home-host ties are not affected by small political conflict, while wars and major institutional transitions devaluate home-host ties.

AB - This study aims to shed light on how the value of home-host ties is contingent on political instability (i.e., political conflict and major institutional transitions). We hypothesize that by increasing the risk within the institutional structure, small political conflict positively moderates the relationship between home-host ties and location attractiveness, whereas full-fledged wars, in which risk to the institutional structure dominates erode the value of ties. Examining location choice decisions in Sub-Saharan Africa, we find evidence that home-host ties are not affected by small political conflict, while wars and major institutional transitions devaluate home-host ties.

KW - Foreign direct investment

KW - Home-host ties

KW - Political instability

KW - Political conflict

KW - Institutional change

KW - Political risk

KW - Foreign direct investment

KW - Home-host ties

KW - Political instability

KW - Political conflict

KW - Institutional change

KW - Political risk

U2 - 10.1016/j.jwb.2020.101077

DO - 10.1016/j.jwb.2020.101077

M3 - Journal article

SN - 1090-9516

VL - 55

JO - Journal of World Business

JF - Journal of World Business

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M1 - 101077

ER -