Guest Seminar Speaker: Rob Salomon, Stern NYU
1:00PM - 2:30PM
Guest Seminar Speaker: Rob Salomon, Stern NYUSign-up sheet is ready at the front desk.
DOES IMITATION REDUCE THE LIABILITY OF FOREIGNNESS? LINKING DISTANCE, ISOMORPHISM, AND PERFORMANCE
Research demonstrates that foreign firms imitate the practices of domestic firms (i.e., adopt an isomorphism strategy) in an attempt counteract the deleterious performance consequences associated with institutional distance. However, studies linking isomorphism to performance generally treat isomorphism as exogenous. In this study, we treat isomorphism as an endogenous strategy taken with its performance consequences in mind. Using a dataset of 80 foreign banks from 25 host countries operating in the United States, we find that foreign firms from institutionally distant home countries benefit more from selecting an isomorphism strategy than they would have had they not chosen such a strategy; however, the performance benefits associated with isomorphism erode as institutionally distant firms gain experience in the host country.