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Experiential drivers of foreign direct investment by late-comer Asian firms: The Chinese evidence

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  • Cui, Lin
  • Li, Yi
  • Li, Zijie
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    Abstract

    Focusing on the cognitive process of managerial decision making, we argue that both organizational and personal international experiences contribute to managerial knowledge structure which in turn influences firms' foreign direct investment decisions. Given the decision task context of late-comer Asian firms, the two types of experiences can lead to decision outcomes that compete for limited decision making resources, and therefore their interaction effect is expected to be negative. Based on a sample of 164 Chinese electronic manufacturing firms over an eight-year period (2001–2008), we found substantial support for our hypotheses. While both organizational and personal international experiences increase the foreign direct investment propensity of a firm, these experiences also weaken each other's effects.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 66 (2013)
    Issue (Month): 12 ()
    Pages: 2451-2459

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    Handle: RePEc:eee:jbrese:v:66:y:2013:i:12:p:2451-2459

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Managerial cognition; International experience; Foreign direct investment; Top management team; Asian emerging economy; Event history analysis;

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    Cited by:
    1. Yang, Zhilin & Su, Chenting, 2013. "Understanding Asian business strategy: Modeling institution-based legitimacy-embedded efficiency," Journal of Business Research, Elsevier, vol. 66(12), pages 2369-2374.

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