Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors
This paper examines the impact of ownership structures of emerging-market firms, which are shaped by local institutions, on the decision of these firms to undertake outward FDI. Our results suggest that family firms and firms with concentrated ownerships (both ubiquitous in emerging markets) are less likely to invest overseas, and that strategic equity holding by foreign investors facilitates outward FDI. We conclude that organisational forms such as family firms, which are optimal outcomes of institutions prevailing in emerging markets, may be suboptimal in a changing business environment in which outward FDI is necessary for access to resources and markets.
Volume (Year): 41 (2010)
Issue (Month): 3 (April)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
Web page: https://aib.msu.edu/
|Order Information:||Web: http://www.springer.com/business+%26+management/journal/41267/PS2|
When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:41:y:2010:i:3:p:437-450. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.