The Role of Inward FDI and Family Firm Heterogeneity on Foreign Location Choice: Evidence from India

Arindam Mondal () and Somnath Lahiri ()
Additional contact information
Arindam Mondal: XLRI-Xavier School of Management
Somnath Lahiri: Illinois State University

Management International Review, 2024, vol. 64, issue 2, No 3, 245-278

Abstract: Abstract The purpose of this study is to examine the internal and external factors that influence the location choice decision of family firms. Drawing on two streams of literature—family firm and international business—we investigate the role that inward FDI (IFDI) and firm’s heterogeneity (ownership structure and management type) play in the location choice of family firms. Our analysis of a large sample of family firms (N = 278) from India suggests that IFDI is positively associated with a greater likelihood of advanced economy location choice compared to the choice of emerging economies. Our results also reveal that the relationship between IFDI and advanced economy location choice is stronger for family-controlled firms than for family-influenced firms. In addition, results demonstrate that within family-controlled firms, the above positive relationship is stronger for firms that are professionally-managed than for firms that are family-managed. The study concludes by explaining the theoretical and managerial implications of the findings and highlighting avenues of future research.

Keywords: Family firm; Inward FDI; Outward FDI; Location choice; Ownership; India (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11575-024-00535-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:manint:v:64:y:2024:i:2:d:10.1007_s11575-024-00535-7

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11575

DOI: 10.1007/s11575-024-00535-7

Access Statistics for this article

Management International Review is currently edited by Michael-Jörg Oesterle and Joachim Wolf

More articles in Management International Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().