Institutional theory perspective and internationalization of firms. How institutional context influences internationalization of SMES?

Abstract

Institutional context significantly impacts international behaviour of firms by facilitating or restricting internationalization processes. The application of institutional theory in business management field has led to the discussions how formal and informal constrains influence human behaviour and what relationships are observed between institutions and organisations. The authors of the paper aim to address the following questions: 1) how institutional theory perspective contributes to the explanation of firms’ internationalization and 2) how institutional context impacts entry direction and speed of internationalization. The paper is based on comprehensive reviews of extant studies. The recommendations for future investigations are developed at the end of the paper.