OUTWARD FOREIGN DIRECT INVESTMENT BY EMERGING MARKET FIRMS : A RESOURCE DEPENDENCE LOGIC

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)1343-1363
Journal / PublicationStrategic Management Journal
Volume35
Issue number9
Early online date7 Jun 2013
Publication statusPublished - Sep 2014
Externally publishedYes

Abstract

This study examines and extends the resource dependence logic of diversification for a better understanding of outward foreign direct investment (OFDI) activities by emerging market firms. We contend that the diversification logic is bounded by state ownership, an important but less considered component of interdependence. Our empirical results, based on panel data analysis of Chinese listed firms, suggest that the level of interdependence between Chinese and foreign firms in China in multiple forms, including symbiotic, competitive, and partner interdependencies, is positively associated with the level of the Chinese firms' OFDI activities. However, Chinese firms with higher levels of state ownership are less susceptible to the pressures imposed by foreign firms to invest abroad.

Research Area(s)

  • emerging market firm, interdependence, outward foreign direct investment, resource dependence theory, state ownership