Institutional distance and foreign subsidiary performance in emerging markets: moderating effects of ownership strategy and host-country experience

Institutional distance has been known to be an important driver of Multinational Enterprises’ strategies and performance in host countries. Based on a large panel dataset of 10562 firms operating in 17 emerging markets and spanning 80 home countries, we re-examine the relationship described by Gaur and Lu (2007) between regulatory institutional distance and subsidiary performance. We extend this research by (1) examining this relationship in the context of emerging markets, (2) examining the moderating effects of ownership strategy and host-country experience within the context of emerging markets and (3) accounting for a greater variety of institutions by including a large number of home and host countries. We find that institutional distance negatively affects subsidiary performance in emerging markets. Our findings also show that the negative effects of institutional distance on subsidiary performance are lesser for subsidiaries with partial ownership (than for subsidiaries with full ownership) and for subsidiaries with greater host-country experience. We discuss our findings with respect to Gaur and Lu’s model, which explores the relationships between these variables in a general context

The role of place branding and image in the development of sectoral clusters: the case of Dubai

This paper contextualizes how place branding and image influence the development of Dubai’s key sectoral clusters, including the key determinants of growth and success under the impression of Porter’s cluster theory. The approach is exploratory and of a qualitative inductive nature. Data was collected through conducting 21 semi-structured interviews with Dubai’s marketing/communication managers and stakeholders. Findings suggest that Dubai’s traditional clusters, namely, trading, tourism and logistics that have strong place branding and image show strong signs of success owing to Dubai’s geographical location (i.e., physical conditions). Among the new clusters, the financial sector is also benefitting from place branding. The results suggest that the success of traditional clusters have a positive spill over effect on the new clusters, in particular on construction and real estate. For policy makers it is worth to note that the recent success of the financial services cluster in Dubai will have positive impact on both, the traditional as well new clusters. The marketing and brand communication managers must consider the correlation and interplay of strength of activities amongst trading, tourism and logistics clusters and its implication while undertaking place branding for clients in their sector

Institutional barriers in labor markets: Examples, impacts, and policies

This paper examines the institutional biases that impede the competitive functioning of labor markets. Two contexts are considered. The first relates to Moroccan labor migrants in The Netherlands, where institutional bias distorts the competitive functioning of the labor market by downgrading the educational returns to migrant workers and acting as a disincentive for further investment in human capital. The second relates to labor markets in Indonesia and Pakistan. Institutional bias in these two countries leads to an exaggeration of labor returns to certified education, and to over-investment in university education. We argue that such biases are fed by misinformed beliefs and group interests, and stand in the way of achieving higher growth and equity.Labor market Educational returns Institutions

Migratiemotieven, Migratienetwerken en Partnerkeuze van Turken en Marokkanen in Nederland

Het onderzoek gaat over achtergronden en mechanismen van immigratie en de implicaties daarvan voor de toekomstige migratie. De survey die ten behoeve van dit onderzoek is opgezet, de NIDI Migrantensurvey 1993 (MS 1993), vond plaats in de maanden april tot en met juli 1993 in negen Nederlandse gemeenten, verspreid over het land. De onderzoeksvragen waren de volgende: • Wat was de rol van arbeid, asiel, gezinshereniging en gezinsvorming in de migratie van Turken en Marokkanen? Wat zijn, afgezien van de formele toelatingsgronden, de achterliggende migratiemotieven en zijn deze in de loop der jaren veranderd? Wat was de rol van het beleid daarbij en zijn de motieven werkelijk gewijzigd of is dit alleen in schijn zo? • Gezinsvorming is voor Turkse en Marokkaanse migranten op dit moment de voornaamste formele toelatingsgrond, maar zal dit ook in de toekomst zo zijn? In hoeverre is er bij partnerkeuze door respectievelijk de eerste en de tweede generatie sprake van een partner uit dezelfde etnische groep die in Nederland woont, van een Nederlandse partner of van een partner uit dezelfde etnische groep die nog in het land van herkomst woont? Wat zijn de verwachtingen in dit verband voor toekomstige generaties? • Netwerken spelen een centrale rol bij migratie. Om inzicht te verwerven in het migratieproces is het daarom essentieel te weten welke rol migratienetwerken hebben bij de migratiebeslissing en het migratiegedrag en of deze netwerken in de toekomst zullen blijven functioneren. Dit onderzoek is verricht in opdracht van het Ministerie van Justitie, Centrale Dienst Wetenschapsbeleid en Ontwikkeling