Abstract
This dissertation contributes to international business research on the interplay of innovation, institutions, and internationalization in the context of emerging markets. Essay 1 examines how internationalization via cross-border acquisitions (CBAs) enhances the subsequent innovation of emerging market multinationals (EMNEs) in their home countries. I also found that such innovation-enhancing effect of CBAs is contingent upon home market characteristics and acquisition relatedness. Essay 2 focuses on the relationship between the dark side of informal institutions and foreign MNEs’ strategies in emerging markets. I identify the illegal informal institutions as crime, corruption, and informality, which impede foreign MNEs’ local commitment. Also, such detrimental effect varies depending on formal institutions and an MNE’s local dependence. Essay 3 develops a new learning mechanism that improves the CBA outcomes of EMNEs. I argue that EMNEs who lack experiential learning can learn from foreign MNEs’ inbound CBAs, thus increasing the completion likelihood of their outbound CBAs. The benefits of vicarious learning will be strengthened if industry relatedness is high or institutional distance is low.