Institutional Liability of Multinational Enterprise in Host Country

Yifan Zhong, Cherrie Jiuhua Zhu, Mike Mingqiong Zhang

Research output: Contribution to conferenceAbstractpeer-review


Internationalisation of multinational enterprises (MNEs) often involves costs of doing business abroad and encounters various liabilities. However, there lacks attention on components of liabilities that caused by institutional impacts on MNEs. These components affect profitability, growth and survival of MNEs in host countries but have never been conceptualised or examined separately before in the literature. Therefore, this paper tries to conceptualise institutional liability to emphasise institutional impacts on MNEs. It starts by reviewing definitions, sources and effects of various liabilities and then separate costs resulted from three pillars of institutions from other costs. Furthermore, possible ways of overcoming institutional liability are also presented.
Original languageEnglish
Publication statusPublished - 2016
Externally publishedYes
Event42nd European International Business Academy Annual Conference - WU Vienna, Vienna, Austria
Duration: 2 Dec 20164 Dec 2016


Conference42nd European International Business Academy Annual Conference
Abbreviated titleEIBA 2016

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