Home country supportiveness/unfavorableness and outward foreign direct investment from China
Ajai S Gaur,
Xufei Ma () and
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Ajai S Gaur: Rutgers University
Xufei Ma: The Chinese University of Hong Kong
Zhujun Ding: University of Reading
Journal of International Business Studies, 2018, vol. 49, issue 3, 324-345
Abstract What drives the outward foreign direct investments (OFDIs) by emerging market firms (EMFs)? Drawing on a strategy tripod framework, this article proposes a theoretical model to predict OFDI by EMFs from China. Specifically, we use institution- and industry-based views to examine two facets of home country environment, namely, the supportiveness from home government and unfavorableness from home industry, as important determinants of OFDI, and compare the relative strength of these effects. Further, we use the resource-based view to argue that the effect of the home country environment is contingent on the international experience portfolios of EMFs.
Keywords: home country environment; outward FDI; emerging market firms; international experience (search for similar items in EconPapers)
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