Operations of foreign firms and domestic small business venturing: The moderating roles of institutions, reputations and internationalizations

Abstract

This study was directed towards evaluating the role of four moderators (regulatory institutional framework in host country, reputations of foreign firms, internationalization opportunities of domestic firms and government assistances for domestic firms) between the relationship of operation of foreign firms and domestic small business venturing from the context of emerging/developing countries. Five hypotheses were set and tested using quantitative data analysis. The outcomes suggest that there is strong negative relationship between operation of foreign firms and domestic small business venturing. The relationship gets stronger with higher reputation of foreign firms and favourable regulatory institutional framework. The relationship gets weaker with government assistance and internationalization opportunities for domestic small business firms. This current research also makes some apparent contributions to the institutional theory and resource based view.