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Seeking legitimacy: Chinese OFDI and domestic isomorphic pressures

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  • Bin Guo

    (Zhejiang University)

  • Gangxiang Xu

    (Zhejiang University)

  • Wen Li

    (Zhejiang University)

Abstract

Drawing on institutional theory, we argue that the likelihood of a Chinese firm adopting an isomorphic strategy in outward foreign direct investment (OFDI) depends on the influence of external isomorphic pressures—specifically, domestic regional and domestic industrial isomorphic pressures—and the firm’s internal legitimacy-seeking motivation. Quantitative analysis of a sample of 107 Chinese listed firms and their OFDI projects in the 2008–2012 period offers supportive evidence for our arguments. Our study offers further insights into Chinese MNEs by providing a better understanding of the impact of China’s regional and industrial diversity on their OFDI.

Suggested Citation

  • Bin Guo & Gangxiang Xu & Wen Li, 2017. "Seeking legitimacy: Chinese OFDI and domestic isomorphic pressures," Asian Business & Management, Palgrave Macmillan, vol. 16(1), pages 1-24, April.
    • Handle: RePEc:pal:abaman:v:16:y:2017:i:1:d:10.1057_s41291-017-0015-5
    DOI: 10.1057/s41291-017-0015-5
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    References listed on IDEAS

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