Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324139 
Year of Publication: 
2019
Citation: 
[Journal:] International Business Review [ISSN:] 1873-6149 [Volume:] 28 [Issue:] 1 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 104-118
Publisher: 
Elsevier, Amsterdam
Abstract: 
This study addresses the simultaneous and diverse effects of differences in informal and formal institutions on cross-border alliances’ financial performance. We utilize data from 405 microfinance institutions (MFIs), based in 74 developing countries, that have alliances with partners from developed countries. We find that the impact of informal institutional differences between MFIs and their cross-border partners is sigmoid-shaped, with performance first increasing, then declining, before improving again as informal institutional differences grow large. By contrast, formal institutional differences appear to be detrimental to MFIs’ performance. Consistent with our prediction, we find that MFIs’ cross-border experience moderates both formal and informal institutional effects.
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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