Institutions, resources, and internationalization of emerging economy firms

Ajai S. Gaur, Vikas Kumar and Deeksha Singh

Journal of World Business, 2014, vol. 49, issue 1, 12-20

Abstract: An important step in the internationalization process of emerging economy firms is the shift from exports to foreign direct investment (FDI). We integrate the resource- and institution-based views to suggest that firms that can use unique institutional advantages are more likely to make this shift. We test these arguments with a longitudinal sample of 28,563 firm-year observations (1989–2005). We found that firms that are affiliated with a business group, have more firm- and group-level international experience, have more technological and marketing resources, and operate in service industries are more likely to shift from exports to FDI.

Keywords: Emerging economy firms; Exports; FDI; Internationalization process; Resource based view; Institutional theory (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (195)

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DOI: 10.1016/j.jwb.2013.04.002

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