Overcoming institutional voids via arbitration

• 成果类型: Article
• 署名作者: Pinkham, Brian C.; Peng, Mike W.
• 署名单位: Western University (University of Western Ontario); University of Texas System; University of Texas Dallas
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s4I267-016-0026-z
• 发表日期: 2017
• 页码: 344-359
• 关键词: institutional voids; INSTITUTION-BASED VIEW; binding international commercial arbitration (BICA); international joint ventures (IJVs); TRANSACTION COST ECONOMICS; CONTRACTS

摘要

Extending the literature on institutional voids, we introduce theory from law that highlights the ability of firms to choose the laws and enforcement mechanisms that govern their international joint ventures (Ws). Specifically, firms may overcome institutional voids by borrowing institutions via binding international commercial arbitration (BICA) rather than relying on host-market institutions. Leveraging an institution-based view, we develop a theoretical framework to articulate the conditions under which IJV partners may choose BICA as opposed to domestic courts to overcome institutional voids in host markets.