Formal and informal institutional differences between home and host country and location choice: evidence from the Spanish hotel industry

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Time: 12.00pm - 1.00pm
Venue: Room 3034, Business School, Kingston Hill campus, Kingston Hill, Kingston upon Thames, Surrey KT2 7LB
Price: free
Speaker(s): Dr. Ana M. Romero-Martínez (Complutense University of Madrid, Spain)

The Small Business Research Centre seminar series welcomes Dr. Ana M. Romero-Martínez (Complutense University of Madrid, Spain). 

Dr Ana M. Romero-Martínez is Senior Lecturer in Management and Entrepreneurship at  Faculty of Economics and Business, Complutense University of Madrid (UCM).  She is Associate Dean for International and Economics affairs at Faculty of Commerce and Tourism (UCM) as well. Currently she is visiting scholar at Kingston Business School. Previously, she held visiting scholar positions at King's College London, University of London (2015), SOAS, University of London (2016) and University of Birmingham (2018). She is member of the Strategies for Business Growth consolidated research group (UCM) and the Business Strategy, Strategor research group (Rey Juan Carlos University). Her research focuses on international business, entrepreneurship and innovation and has been published in academic journals such as Journal of World Business, International Business Review, Management International Review, Service Business or Group Decision and Negotiation and in books published in editorials such as Springer.

Abstract

Using secondary data of internationalized Spanish hotel chains, this research attempts to examine the role of formal and informal institutional differences between home and host country from the foreign location choice point of view. Generally speaking, the results show that (a) the higher the formal institutional differences the lower the attractiveness of the foreign location, (b) the negative effect of linguistic differences, as an informal institutional dimension, significantly affects the choice of location, and (c) the moderating role of linguistic differences between formal institutional factors with regards to the choice of location is contrary to our expectations. Based on the findings, this work wishes to offer not just a better understanding of the location choice decisions within the service sector industry but also to identify both the joint effect of formal and informal institutional factors as well as to distill their individual effects. This is of relevance since there seem to be no conclusive empirical evidence of such effects so far in the literature.

All are welcome.

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Contact: Hang Do
Email: H.Do@kingston.ac.uk