Performance aspiration, foreign competition, and outward foreign direct investment

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review

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Author(s)

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Detail(s)

Original languageEnglish
Title of host publicationAcademy of Management Proceedings
PublisherAcademy of Management
Volume2007
Publication statusPresented - Aug 2017

Conference

Title77th Annual Meeting of the Academy of Management
LocationAtlanta
PlaceUnited States
CityAtlanta
Period4 - 8 August 2017

Abstract

This study investigates behavioral explanations for the Chinese firms’ outward FDI by focusing on the effects of performance relative to aspiration level and extends the model of decision-making to a competitive context to develop a theory about how foreign competition in domestic markets affects firms’ decision-making. For firms performing above aspirations, we propose that the extent of outward FDI increases following the slack search argument. For firms performing below aspirations, outward FDI was not their matched solution for the performance problem, which is not consistent with problemistic search. However, foreign competition increases the probability of their doing a problemistic search through OFDI by affecting their resource allocation and focus of attention. Our empirical results, based on panel data analysis of Chinese listed firms between 2002 and 2010, generally support the predictions.

Research Area(s)

  • foreign competition, OFDI, performance aspiration

Bibliographic Note

Research Unit(s) information for this record is provided by the author(s) concerned.

Citation Format(s)

Performance aspiration, foreign competition, and outward foreign direct investment. / Yu, Shu; Delios, Andrew.

Academy of Management Proceedings. Vol. 2007 Academy of Management, 2017.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review