Drawing on the institution-based view of intellectual property (IP) rights, we argue that ‘distance’ in IP protection strength of MNEs’ home and host countries reduces the ability of MNEs to innovate at foreign subsidiary locations. We contend that this logic applies in both directions –...

Institutional distance has been known to be an important driver of Multinational Enterprises' strategies and performance in host countries. Based on a large panel dataset of 10,562 firms operating in 17 emerging markets and spanning 80 home countries, we re-examine the relationship described by...