Informal institutions and development. formal Informal institutions Internationalization Early-stage Entrepreneurship Multi-level modeling A B S T R A C T study examines the influence of three informal institutions, performance orientation, self-expression and social desirability, on the extent of internationalization by early stage entrepreneurial firms. Formal This is a firm that engages in foreign direct investment (FDI). Distance, formal and informal institutions in international trade Informal Institution Question: ‘Formal and Informal institutions shape the conduct of international business.’. BA 422 - International Business Ch. They provide a relatively predictable structure for everyday social, economic […] This study examines the impact of formal institutions on foreign direct investment. formal and informal institutions in international business