This study investigates the impact of spatial distance and location conditions on the decision-making processes of multinational enterprises (MNEs) and financial institutions in the context of liquefied natural gas (LNG) projects. By examining 97 investment decisions made by 84 joint venture (JV) sponsors and 176 lending decisions for 28 projects across 22 countries, the research develops a comparative framework to understand how institutional and cultural distances influence these actors. The study employs hierarchical multiple regression and logistic regression analyses to identify key factors and their interactions with four moderators. The findings reveal contrasting approaches. MNEs prioritize homogeneity with host country institutions to mitigate risks and establish legitimacy in foreign markets, adhering to conservative strategies that favor stability and predictability. In contrast, financial institutions adopt a hybrid strategy, balancing homogeneity with host country formal institutions and heterogeneity with informal factors of JV partners to optimize returns and diversification. These differences underscore the distinct priorities of MNEs and financial institutions in managing uncertainty and resource allocation in international ventures. Our research contributes to institutional theory by elucidating how actors navigate complex institutional and cultural environments. By comparing the behaviors of MNEs and financial institutions under similar analytical conditions, it highlights the role of macro-level influences, such as financial systems, and micro-level factors, including cultural and institutional distances, in shaping strategic decisions. The findings extend prior models by incorporating the unique dynamics of consortium-based international JVs, offering new perspectives on the interplay between distance factors and decision-making. Practical implications include recommendations for MNEs to align investment strategies with host country conditions and for financial institutions to adapt financing models to diverse institutional and cultural contexts. For example, selecting experienced partners in target regions can reduce uncertainty and enhance project outcomes. Additionally, the study emphasizes the importance of flexible decision-making frameworks that account for spatial and contextual influences, enabling more effective resource allocation and risk management. Overall, the research advances theoretical understanding and provides actionable insights for managing the complexities of cross-border investments and financing, particularly in large-scale, capital-intensive projects such as LNG ventures.
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