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Institutions, resources, and internationalization of emerging economy firms

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

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.

Suggested Citation

  • Gaur, Ajai S. & Kumar, Vikas & Singh, Deeksha, 2014. "Institutions, resources, and internationalization of emerging economy firms," Journal of World Business, Elsevier, vol. 49(1), pages 12-20.
  • Handle: RePEc:eee:worbus:v:49:y:2014:i:1:p:12-20
    DOI: 10.1016/j.jwb.2013.04.002
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