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The role of institutional distance on the choice of multinational enterprise’s entry mode: The case of multinational subsidiaries in Vietnam

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The aim of the paper is to investigate the relation between institutional distance (between home and host countries) and the choice of multinational enterprise’s (MNE) entry mode. Adapting transaction cost theory, this study hypothesizes that an MNE is likely to entry an institutionally distant country through merger and acquisition (M&A) rather than greenfield. |

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