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Institutions, resources, and internationalization of emerging economy firms

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  • Gaur, Ajai S.
  • Kumar, Vikas
  • Singh, Deeksha
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    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.

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    Bibliographic Info

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

    Volume (Year): 49 (2014)
    Issue (Month): 1 ()
    Pages: 12-20

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    Handle: RePEc:eee:worbus:v:49:y:2014:i:1:p:12-20

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    Related research

    Keywords: Emerging economy firms; Exports; FDI; Internationalization process; Resource based view; Institutional theory;

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