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Seeking legitimacy: Chinese OFDI and domestic isomorphic pressures

Bin Guo (), Gangxiang Xu () and Wen Li ()
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Bin Guo: Zhejiang University
Gangxiang Xu: Zhejiang University
Wen Li: Zhejiang University

Asian Business & Management, 2017, vol. 16, issue 1, 1-24

Abstract: Abstract Drawing on institutional theory, we argue that the likelihood of a Chinese firm adopting an isomorphic strategy in outward foreign direct investment (OFDI) depends on the influence of external isomorphic pressures—specifically, domestic regional and domestic industrial isomorphic pressures—and the firm’s internal legitimacy-seeking motivation. Quantitative analysis of a sample of 107 Chinese listed firms and their OFDI projects in the 2008–2012 period offers supportive evidence for our arguments. Our study offers further insights into Chinese MNEs by providing a better understanding of the impact of China’s regional and industrial diversity on their OFDI.

Keywords: Domestic isomorphic pressures; State ownership; Firm size; Outward foreign direct investment (search for similar items in EconPapers)
Date: 2017
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