Does political risk affect the scope of the expansion abroad? Evidence from Spanish MNEsAlfredo Jiménez International Business Review, 2010, vol. 19, issue 6, 619-633 Abstract: This study examines the effect of institutions on the strategy of international diversification and on the relationships between political risk and the scope of internationalisation. Drawing on the Uppsala model but also on diversification and portfolio theory, I examine the behaviour of Spanish Multinational Enterprises (MNEs). Using negative binomial regression on a sample of 166 MNEs, I find that firms only partially follow the Uppsala model and that political capabilities play a key role in their internationalisation strategy. An interesting debate arises over the convenience of the reliance that firms show on corrupted host countries in both the short and the long term. A positive relationship between liquidity, size and unrelated diversification with the scope of internationalisation is also demonstrated, while a negative one is discovered for the age of the company with the dependent variable. Keywords: Foreign; direct; investment; Negative; binomial; regression; Political; risk; Scope; of; internationalisation; Spanish; MNE (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:19:y:2010:i:6:p:619-633 Ordering information: This journal article can be ordered from Access Statistics for this article International Business Review is currently edited by P. Ghauri More articles in International Business Review from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.