IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v42y2011i2p263-284.html
   My bibliography  Save this article

Effects of inward investment on outward investment: The venture capital industry worldwide 1985–2007

Author

Listed:
  • Qian Gu

    (Department of Strategy and Policy, NUS Business School, Singapore)

  • Jane W Lu

    (Department of Strategy and Policy, NUS Business School, Singapore)

Abstract

We identify inward investment as an important impetus to outward investment, supplemental to the impetuses depicted in conventional internationalization frameworks. By incorporating both the spillover and competition effects of foreign entrants, we develop an integrated framework of the inward–outward investment relationship for different investment modes and different home-country and host-country pairs. Our analysis of venture capital (VC) investments worldwide from 1985 to 2007 shows a positive spillover effect on outward investment for inward co-investments and a negative competition effect on outward investment for inward standalone investments. We find the strongest effects when the host country is a laggard in the VC industry and the home country is a leader.

Suggested Citation

  • Qian Gu & Jane W Lu, 2011. "Effects of inward investment on outward investment: The venture capital industry worldwide 1985–2007," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 263-284, February.
  • Handle: RePEc:pal:jintbs:v:42:y:2011:i:2:p:263-284
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jibs/journal/v42/n2/pdf/jibs201051a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/jibs/journal/v42/n2/full/jibs201051a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    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. Martin, Xavier, 2013. "Solving theoretical and empirical conundrums in international strategy research by matching foreign entry mode choices and performance," Other publications TiSEM 7645ea46-0b9a-4fc0-ae33-a, Tilburg University, School of Economics and Management.
    2. Cui, Lin & He, Xiaoming, 2017. "Expanding near the home base or venture far? The influence of home country state on the economic distance of foreign direct investments," Journal of Business Research, Elsevier, vol. 75(C), pages 95-107.
    3. repec:bla:stratm:v:38:y:2017:i:13:p:2704-2725 is not listed on IDEAS
    4. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Does learning at home and from abroad boost the foreign subsidiary performance of emerging economy multinational enterprises?," International Business Review, Elsevier, vol. 25(1), pages 141-151.
    5. Rademaker, Linda, 2016. "Failing to prepare, preparing to fail? : Home country alliance experience as an antecedent to international expansion," Other publications TiSEM 8d5e00ca-bf59-4462-85df-5, Tilburg University, School of Economics and Management.
    6. repec:kap:asiapa:v:34:y:2017:i:4:d:10.1007_s10490-017-9542-z is not listed on IDEAS
    7. repec:eee:iburev:v:27:y:2018:i:1:p:289-308 is not listed on IDEAS
    8. Wang, Pengfei, 2017. "Syndication and Foreignness: Venture Capital Investments in Emerging and Developed Markets," Journal of International Management, Elsevier, vol. 23(1), pages 1-15.

    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:pal:jintbs:v:42:y:2011:i:2:p:263-284. 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). General contact details of provider: http://www.palgrave-journals.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.