The role of reference groups in international investment decisions by firms from emerging economies

Jiatao Li and Fiona Kun Yao

Journal of International Management, 2010, vol. 16, issue 2, 143-153

Abstract: Investments in China by firms from emerging economies were studied to determine how various reference groups affect their foreign market entry behavior. Imitation was shown to be an important factor, but the mechanism seems to vary depending on the institutional environments in the host and the home market. Firms from emerging economies seem to rely on copying the entry decisions of peers from their home country, especially in locations where the risk of government meddling is greatest. The example of firms from developed economies was found to be less influential.

Keywords: Reference; groups; Emerging; economies; China (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (33)

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