The impact of home business network attributes on Chinese outward foreign direct investment

Jian Du, Yue Xu, Hinrich Voss and Song Wang

International Business Review, 2021, vol. 30, issue 4

Abstract: Researchers who take a network perspective argue that insidership in foreign market networks is a necessary condition for internationalization. In this study, we argue that insidership in home market networks also matters. The effect of home network insidership on outward foreign direct investment (OFDI) depends on both individual and joint effects of structural and relational network attributes. Our study based on a survey of 194 Chinese firms shows that firms in a central network position are more likely to engage in OFDI than those in a brokerage position. Furthermore, we find the interaction between firms’ centrality and their connections to foreign-invested enterprises to be significantly and positively associated with OFDI, whereas a significantly negative effect is evidenced when a firm is connected more to domestic firms.

Keywords: Network perspective; Insidership; Structural attribute; Relational attribute; OFDI (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:30:y:2021:i:4:s0969593120301281

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DOI: 10.1016/j.ibusrev.2020.101779

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