Motives for Outward FDI of Chinese Private Firms: Firm Resources, Industry Dynamics, and Government Policies

26 Pages Posted: 5 Jul 2011

See all articles by Jiangyong Lu

Jiangyong Lu

Peking University

Xiaohui Liu

Loughborough University

Honglin Wang

Hong Kong Monetary Authority - Hong Kong Institute for Monetary Research (HKIMR)

Date Written: July 2011

Abstract

Using recent survey data, this study examines the impact of firm resources, industry dynamics, and government policies on the outward foreign direct investment (FDI) motives of Chinese firms, based on the integrated ‘strategy tripod’ framework. The results suggest that supportive government policies are important motivators for both strategic asset‐seeking and market‐seeking outward FDI. Firms' technology‐based competitive advantages and a high level of industry research and development (R&D) intensity tend to motivate strategic asset‐seeking outward FDI, whereas firm's export experience and higher level of domestic industry competition tend to induce market‐seeking outward FDI.

Keywords: Chinese private firms, market‐seeking outward FDI, outward FDI motives, strategic asset‐seeking outward FDI

Suggested Citation

Lu, Jiangyong and Liu, Xiaohui and Wang, Honglin, Motives for Outward FDI of Chinese Private Firms: Firm Resources, Industry Dynamics, and Government Policies (July 2011). Management and Organization Review, Vol. 7, Issue 2, pp. 223-248, 2011. Available at SSRN: https://ssrn.com/abstract=1879024 or http://dx.doi.org/10.1111/j.1740-8784.2010.00184.x

Jiangyong Lu

Peking University ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

Xiaohui Liu

Loughborough University ( email )

Ashby Road
Nottingham NG1 4BU
Great Britain

Honglin Wang

Hong Kong Monetary Authority - Hong Kong Institute for Monetary Research (HKIMR) ( email )

3 Garden Road, 8th Floor
Hong Kong
China

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