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
Date Written: December 5, 2017
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
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