Advancing research on the determinants of Indian MNEs: the role of sub-national institutions

Purpose - The purpose of this paper is to provide directions for advancing the research on determinants of outward foreign direct investment (FDI) from India. Design/methodology/approach - The paper uses literature review as a method to identify a research gap in the literature on internationalization of Indian firms. Findings - The synthesis of the theoretical debate and empirical studies conducted in context of EMNEs, with a particular focus on India and preliminary examination of data on cross-border acquisitions as well as institutions in India lead us to argue for the consideration of institutions at sub-national level (Indian states) in examining the determinants of outward FDI from India. The paper also proposes a conceptual framework relating to the mechanism through which institutions at the state level in India affect the propensity of firms to invest overseas. Research limitations/implications - Since the propositions are not tested empirically, the paper does not provide conclusive results. Originality/value - In addition to providing the synthesis of the theoretical debate and empirical studies, paper is, to the best of author’s knowledge, the first one to present a conceptual framework relating institutions at sub-national level with the outward foreign direct investment from India.