Institutional antecedents and performance consequences of influence strategies in export channels to transitional economies

Cristian Chelariu, Daniel C. Bello, David I. Gilliland

Research output: Contribution to journalArticle

Abstract

This study examines how the institutional environment of transitional economies impacts institutional arrangements in the form of influence strategies employed by Western exporters in managing relationships with local firms. Reflecting environmental components, a Western firm’s understanding of Eastern Europe’s regulatory volatility, foreignness, and partner’s control locus is posited to impact economic performance by affecting key coercive and non-coercive influence strategies. A model specifying the effects of the institutional environment on economic outcomes is developed and tested on data from US exporters to Eastern Europe. A structural equation analysis indicates institutional components have a differential impact on the influence strategies employed by these Western firms and on export performance. In particular, use of coercive legalistic pleas is increased by regulatory volatility but reduced by perceived foreignness while use of non-coercive recommendations is increased by the partner’s external locus of control but not by perceived foreignness. Importantly, the institutional environment’s impact on economic performance is shown to be direct as well as indirect through the influence strategies Western firms employ in Eastern Europe. The study concludes with a discussion of implications for managers and researchers.
Original languageEnglish
Pages (from-to)525-534
Number of pages10
JournalJournal of Business Research
Volume59
Issue number5
DOIs
Publication statusPublished - May 2006

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Transitional economies
Influence strategies
Eastern Europe
Institutional environment
Economic performance
Exporters
Institutional analysis
Locus of control
Managers
Structural equations
Export performance
Institutional arrangements

Keywords

  • export channels
  • transitional economies
  • institutional environment
  • influence strategies

Cite this

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abstract = "This study examines how the institutional environment of transitional economies impacts institutional arrangements in the form of influence strategies employed by Western exporters in managing relationships with local firms. Reflecting environmental components, a Western firm’s understanding of Eastern Europe’s regulatory volatility, foreignness, and partner’s control locus is posited to impact economic performance by affecting key coercive and non-coercive influence strategies. A model specifying the effects of the institutional environment on economic outcomes is developed and tested on data from US exporters to Eastern Europe. A structural equation analysis indicates institutional components have a differential impact on the influence strategies employed by these Western firms and on export performance. In particular, use of coercive legalistic pleas is increased by regulatory volatility but reduced by perceived foreignness while use of non-coercive recommendations is increased by the partner’s external locus of control but not by perceived foreignness. Importantly, the institutional environment’s impact on economic performance is shown to be direct as well as indirect through the influence strategies Western firms employ in Eastern Europe. The study concludes with a discussion of implications for managers and researchers.",
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Institutional antecedents and performance consequences of influence strategies in export channels to transitional economies. / Chelariu, Cristian; Bello, Daniel C.; Gilliland, David I.

In: Journal of Business Research, Vol. 59, No. 5, 05.2006, p. 525-534.

Research output: Contribution to journalArticle

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KW - institutional environment

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