Home Country Supportiveness/Unfavorableness and Outward Foreign Direct Investment from China

Journal of International Business Studies, DOI: 10.1057/s41267-017-0136-2

52 Pages Posted: 9 Dec 2017 Last revised: 24 Feb 2018

See all articles by Ajai Gaur

Ajai Gaur

Rutgers Business School - Newark and New Brunswick

Xufei Ma

The Chinese University of Hong Kong (CUHK) - Department of Management

Zhujun Ding

University of Reading - Henley Business School

Date Written: December 5, 2017

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 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

Suggested Citation

Gaur, Ajai S. and Ma, Xufei and Ding, Zhujun, Home Country Supportiveness/Unfavorableness and Outward Foreign Direct Investment from China (December 5, 2017). Journal of International Business Studies, DOI: 10.1057/s41267-017-0136-2. Available at SSRN: https://ssrn.com/abstract=3082648

Ajai S. Gaur (Contact Author)

Rutgers Business School - Newark and New Brunswick ( email )

Newark, NJ
United States

Xufei Ma

The Chinese University of Hong Kong (CUHK) - Department of Management ( email )

Shatin, N.T.
Hong Kong

Zhujun Ding

University of Reading - Henley Business School ( email )

Greenlands
Henley, RG9 3AU
United Kingdom

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