Publications

Journal Article

This study assesses macro, state-centered structural influences on the foreign host market performance of transnational firms, highlighting sanctioning and monitoring.

The authors hypothesize that transnational firms from home countries that have more structural links to a focal host country through (1) common membership in inter-governmental organizations, (2) the host's export dependence, and (3) immigration will be better able to allay concerns about value appropriation vis-à-vis both public and private actors in that host country.

Those transnational firms will have more incentive to create value in that host country and should experience greater success in economic exchange there. Regression results, based on the 2000--2001 relative sales performance of foreign transnationals from a variety of home countries operating in six large host countries across more than 35 industries, confirm that our three indicators of structure have positive, direct, and independent effects on transnationals' foreign market performance.

Dependence and immigration enable sanctioning and monitoring and, beyond capabilities and trust, are additional mechanisms in explaining transnationals' foreign market performance.