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Home country supportiveness/unfavorableness and outward foreign direct investment from China

Author

Listed:
  • Ajai S Gaur

    (Rutgers University)

  • Xufei Ma

    (The Chinese University of Hong Kong)

  • Zhujun Ding

    (University of Reading)

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 the resource-based view to argue that the effect of the home country environment is contingent on the international experience portfolios of EMFs.

Suggested Citation

  • Ajai S Gaur & Xufei Ma & Zhujun Ding, 2018. "Home country supportiveness/unfavorableness and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 324-345, April.
    • Handle: RePEc:pal:jintbs:v:49:y:2018:i:3:d:10.1057_s41267-017-0136-2
    DOI: 10.1057/s41267-017-0136-2
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