TY - JOUR
T1 - What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks
AU - Wang, Chenqi
AU - Hong, Junjie
AU - Kafouros, Mario
AU - Boateng, Agyenim
PY - 2012/6
Y1 - 2012/6
N2 - This study examines the forces driving outward FDI of emerging-market firms. Its contribution lies in integrating and testing insights from institutional theory, industrial organization economics and the resource-based view of the firm. This approach enables us to consider three different levels of analysis – firm, industry and country – and, thus, to distinguish between different sources of variation. Using a large firm-level Chinese dataset, we offer new evidence indicating that government support and the industrial structure of the home country of the investing firm play a crucial role in explaining outward FDI. By contrast, technological and advertising resources tend to be less important.
AB - This study examines the forces driving outward FDI of emerging-market firms. Its contribution lies in integrating and testing insights from institutional theory, industrial organization economics and the resource-based view of the firm. This approach enables us to consider three different levels of analysis – firm, industry and country – and, thus, to distinguish between different sources of variation. Using a large firm-level Chinese dataset, we offer new evidence indicating that government support and the industrial structure of the home country of the investing firm play a crucial role in explaining outward FDI. By contrast, technological and advertising resources tend to be less important.
KW - China
KW - FDI
KW - emerging-market firms
U2 - 10.1016/j.ibusrev.2011.05.004
DO - 10.1016/j.ibusrev.2011.05.004
M3 - Article
VL - 21
SP - 425
EP - 438
JO - International Business Review
JF - International Business Review
SN - 0969-5931
IS - 3
ER -