Experiential drivers of foreign direct investment by late-comer Asian firms: The Chinese evidence

Lin Cui, Yi Li and Zijie Li

Journal of Business Research, 2013, vol. 66, issue 12, 2451-2459

Abstract: Focusing on the cognitive process of managerial decision making, we argue that both organizational and personal international experiences contribute to managerial knowledge structure which in turn influences firms' foreign direct investment decisions. Given the decision task context of late-comer Asian firms, the two types of experiences can lead to decision outcomes that compete for limited decision making resources, and therefore their interaction effect is expected to be negative. Based on a sample of 164 Chinese electronic manufacturing firms over an eight-year period (2001–2008), we found substantial support for our hypotheses. While both organizational and personal international experiences increase the foreign direct investment propensity of a firm, these experiences also weaken each other's effects.

Keywords: Managerial cognition; International experience; Foreign direct investment; Top management team; Asian emerging economy; Event history analysis (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:66:y:2013:i:12:p:2451-2459

DOI: 10.1016/j.jbusres.2013.05.034

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