Institutions, Resources, and Internationalization of Emerging Economy Firms

Journal of World Business, 49 (2), Forthcoming

32 Pages Posted: 15 Mar 2013 Last revised: 21 Apr 2014

See all articles by Ajai Gaur

Ajai Gaur

Rutgers Business School - Newark and New Brunswick

Vikas Kumar

The University of Sydney Business School

Deeksha A. Singh

Rutgers Business School - Camden; National University of Singapore (NUS)

Date Written: March 14, 2013

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

Suggested Citation

Gaur, Ajai S. and Kumar, Vikas and Singh, Deeksha A., Institutions, Resources, and Internationalization of Emerging Economy Firms (March 14, 2013). Journal of World Business, 49 (2), Forthcoming. Available at SSRN: https://ssrn.com/abstract=2233197

Ajai S. Gaur (Contact Author)

Rutgers Business School - Newark and New Brunswick ( email )

Newark, NJ
United States

Vikas Kumar

The University of Sydney Business School ( email )

Storie Dixson Building H10
The University of Sydney
Sydney, NSW 2006
Australia
+ 61 2 9351 6438 (Phone)
+ 61 2 9036 5378 (Fax)

HOME PAGE: http://www.econ.usyd.edu.au/staff/vikask

Deeksha A. Singh

Rutgers Business School - Camden ( email )

227 Penn Street
Camden, NJ 08102
United States

National University of Singapore (NUS) ( email )

Bukit Timah Road 469 G
Singapore, 117591
Singapore

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