IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v22y2017i4p587-603.html
   My bibliography  Save this article

Cultural distance, political risk and location decisions of emerging-market multinationals: a comparison between Chinese and Indian firms

Author

Listed:
  • Diego Quer
  • Enrique Claver
  • Laura Rienda

Abstract

The international expansion of emerging-market multinational enterprises (MNEs) is becoming a research topic of increasing interest among international business scholars. One of the specific research questions arising is whether conventional theoretical arguments originated in studies on developed-country MNEs are still valid for explaining the international behavior of emerging-market MNEs. Drawing on the institutional theory, this paper argues that the influence of host country institutional factors on location decisions differs between Chinese and Indian MNEs. We hypothesize that the negative impact of both cultural distance and political risk on location decisions is lower for Chinese MNEs as compared to Indian MNEs. From a sample of 832 outward foreign direct investments (OFDIs) we obtain empirical support for these hypotheses.

Suggested Citation

  • Diego Quer & Enrique Claver & Laura Rienda, 2017. "Cultural distance, political risk and location decisions of emerging-market multinationals: a comparison between Chinese and Indian firms," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 587-603, October.
    • Handle: RePEc:taf:rjapxx:v:22:y:2017:i:4:p:587-603
    DOI: 10.1080/13547860.2017.1312065
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2017.1312065
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2017.1312065?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chung Van Dong & Hoan Quang Truong, 2020. "The determinants of creative goods exports: evidence from Vietnam," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(2), pages 281-308, June.
    2. Nhan Thanh Thi Hoang & Hoan Quang Truong & Chung Van Dong, 2020. "Determinants of Trade Between Taiwan and ASEAN Countries: A PPML Estimator Approach," SAGE Open, , vol. 10(2), pages 21582440209, May.
    3. Munjal, Surender & Varma, Sumati & Bhatnagar, Ankur, 2022. "A comparative analysis of Indian and Chinese FDI into Africa: The role of governance and alliances," Journal of Business Research, Elsevier, vol. 149(C), pages 1018-1033.
    4. Bhatnagar, Ankur, 2021. "What drives Indian Non-SOE FDI into Africa?," African Journal of Economic Review, African Journal of Economic Review, vol. 9(4), September.
    5. Victor NYATEFE & Mawussé Komlagan Nézan OKEY, 2021. "Les déterminants de la croissance des exportations de biens culturels au Togo," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 83-99.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:22:y:2017:i:4:p:587-603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.