Reciprocity and informal institutions in international market entry

This article first identifies two gaps in the literature: (1) the need to expand international market entry research beyond contractual modes of "make, buy, and ally;" and (2) the need to address the imbalance in the institution-based view that has paid inadequate attention to informal institutions. To help close the two gaps, we identify reciprocity-the mutually contingent exchange of gratifications that is supported by informal institutions-to be a non-contractual mode of international market entry. We focus on how informal institutions provide some of the conditions, motivations, and precipitating circumstances behind the use of reciprocity.