The influence of institutional void and socio-cultural factors on the internationalization of emerging multinationals

Abstract

The process of firm internationalization involves critical decisions regarding location, entry mode, investment levels, and the management of foreign operations. This paper examines the effects of institutional voids and socio-cultural factors on the internationalization of Emerging Multinationals (EMNCs) from the BRICS and MENA regions. We draw on institutional and internationalization theories to explain how socio-cultural factors influence the internationalization of EMNCs. Using the two-step system GMM over a ten-year period (2012–2021), we find that institutional voids, religious diversity, power distance, and a firm's ESG practices at home positively impact internationalization. These findings contribute to the literature by quantifying key variables related to internationalization, cultural diversity, institutional voids, power distance, and ESG engagement.

RAS ID

72566

Document Type

Journal Article

Volume

73

School

School of Business and Law

Copyright

subscription content

Publisher

Elsevier

Identifier

Thao Nguyen: https://orcid.org/0009-0002-9839-8629

Comments

Ettalibi, N., Arunachalam, M., Nguyen, T., & ur Rehman, K. (2025). The influence of institutional void and socio-cultural factors on the internationalization of emerging multinationals. Research in International Business and Finance, 73. https://doi.org/10.1016/j.ribaf.2024.102605

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Link to publisher version (DOI)

10.1016/j.ribaf.2024.102605