What does this research mean for the field?

Digital platforms develop firm-level governance capability to substitute for weak domestic institutions, which then serves as a transferable infrastructure enabling them to successfully internationalize into weak host-country environments. Novelty: ClaimNovelty.NOVEL_FINDING. Consensus alignment: ConsensusAlignment.ESTABLISHES_NEW_DIRECTION.

What question did this study set out to answer?

Investigate how digital platforms sustain cross-border operations in weak institutional environments by leveraging internal governance capabilities as institutional substitutes.

August 28, 2026Journal of International Business StudiesOpen Access

Public institutions, governance capability, and platform internationalization: institutional substitution at home and abroad

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Authors

NZNan ZhouNankai University

Discussion

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Implication

Longitudinal study reveals private governance capability drives expansion in 50 digital platforms, indicating internal rule systems substitute for weak public institutions across borders.

Key Points

Investigate how digital platforms sustain cross-border operations in weak institutional environments by leveraging internal governance capabilities as institutional substitutes.
Longitudinal analysis tracking 50 digital platforms from China and the United States.
Evaluated entry decisions and operational sustainability across 61 host countries from 1996 to 2023.
Platforms develop internal governance capabilities to compensate for weak home institutions and subsequently transfer these regulatory routines abroad to operate in weak host-country environments.
The positive impact of governance capability on internationalization is magnified when home-country institutions are stronger than host-country institutions and for broker platforms with highly replicable rule routines.

Cite This Study

Nan Zhou (2026) studied this question.

synapsesocial.com/papers/6a916ea0d15324a1df3aa88a https://doi.org/10.1057/s41267-026-00894-3

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August 28, 2026Journal of International Business StudiesOpen Access

Public institutions, governance capability, and platform internationalization: institutional substitution at home and abroad

View Full Paper

Ask AI

Bookmark

Authors

NZNan ZhouNankai University

Discussion

Member takes

Implication

Longitudinal study reveals private governance capability drives expansion in 50 digital platforms, indicating internal rule systems substitute for weak public institutions across borders.

Key Points

Investigate how digital platforms sustain cross-border operations in weak institutional environments by leveraging internal governance capabilities as institutional substitutes.
Longitudinal analysis tracking 50 digital platforms from China and the United States.
Evaluated entry decisions and operational sustainability across 61 host countries from 1996 to 2023.
Platforms develop internal governance capabilities to compensate for weak home institutions and subsequently transfer these regulatory routines abroad to operate in weak host-country environments.
The positive impact of governance capability on internationalization is magnified when home-country institutions are stronger than host-country institutions and for broker platforms with highly replicable rule routines.

Cite This Study

Nan Zhou (2026) studied this question.

synapsesocial.com/papers/6a916ea0d15324a1df3aa88a https://doi.org/10.1057/s41267-026-00894-3

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