TY - JOUR
T1 - When Political Instability Devaluates Home-host Ties
AU - Witte, Caroline
AU - Burger, Martijn J.
AU - Pennings, Enrico
PY - 2020/6
Y1 - 2020/6
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
UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954921426642&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes
U2 - 10.1016/j.jwb.2020.101077
DO - 10.1016/j.jwb.2020.101077
M3 - Journal article
VL - 55
JO - Journal of World Business
JF - Journal of World Business
SN - 1090-9516
IS - 4
M1 - 101077
ER -