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International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

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International experience and FDI location choices of Chinese firms : The moderating effects of home country government support and host country institutions. / Lu, Jiangyong; Liu, Xiaohui; Wright, Mike; Filatotchev, Igor.

In: Journal of International Business Studies, Vol. 45, No. 4, 01.05.2014, p. 428-449.

Research output: Contribution to journalArticlepeer-review

Harvard

Lu, J, Liu, X, Wright, M & Filatotchev, I 2014, 'International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions', Journal of International Business Studies, vol. 45, no. 4, pp. 428-449. https://doi.org/10.1057/jibs.2013.68

APA

Lu, J., Liu, X., Wright, M., & Filatotchev, I. (2014). International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions. Journal of International Business Studies, 45(4), 428-449. https://doi.org/10.1057/jibs.2013.68

Vancouver

Lu J, Liu X, Wright M, Filatotchev I. International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions. Journal of International Business Studies. 2014 May 1;45(4):428-449. https://doi.org/10.1057/jibs.2013.68

Author

Lu, Jiangyong ; Liu, Xiaohui ; Wright, Mike ; Filatotchev, Igor. / International experience and FDI location choices of Chinese firms : The moderating effects of home country government support and host country institutions. In: Journal of International Business Studies. 2014 ; Vol. 45, No. 4. pp. 428-449.

Bibtex Download

@article{30b03f229add41eab7c5ad8769056e97,
title = "International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions",
abstract = "We examine the extent to which Chinese government support of foreign direct investment (FDI) projects and host country institutional environments interact with prior entry experience by Chinese firms, and how this interrelationship affects FDI undertaken by Chinese firms. We hypothesize that home country government support and well-established host country institutions enhance organizational capabilities to take risks in FDI. As such, they reduce the need to accumulate experiential knowledge and capabilities relating to entering host countries based on prior entry experience in a particular country when undertaking follow-up investment projects. Using a unique, hand-collected panel data set of Chinese publicly listed firms during 2002?2009, we find that home government support and well-developed host country institutions reduce the importance of prior entry experience and significantly increase the likelihood of FDI entry into a host country. Further, from our subsample analyses we identify differences between entering developed and developing host countries in terms of the impact of home country government support and quality of host country institutions. Our findings help explain the puzzle concerning why emerging economy firms have rapidly internationalized in a short period of time and do not follow the pattern predicted by classical IB theories.",
keywords = "international experience, foreign direct investment, outward FDI, institutional environment, knowledge-based view, multilevel analysis",
author = "Jiangyong Lu and Xiaohui Liu and Mike Wright and Igor Filatotchev",
note = "This is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version of Lu, J, Liu, X, Wright, M Filatotchev, I (2014). International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions. JOURNAL OF INTERNATIONAL BUSINESS STUDIES, 45(4), pp. 428-449, is available online at: http://dx.doi.org/10.1057/jibs.2013.68",
year = "2014",
month = may,
day = "1",
doi = "10.1057/jibs.2013.68",
language = "English",
volume = "45",
pages = "428--449",
journal = "Journal of International Business Studies",
issn = "0047-2506",
publisher = "BFI Publishing/Palgrave Macmillan",
number = "4",

}

RIS (suitable for import to EndNote) Download

TY - JOUR

T1 - International experience and FDI location choices of Chinese firms

T2 - The moderating effects of home country government support and host country institutions

AU - Lu, Jiangyong

AU - Liu, Xiaohui

AU - Wright, Mike

AU - Filatotchev, Igor

N1 - This is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version of Lu, J, Liu, X, Wright, M Filatotchev, I (2014). International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions. JOURNAL OF INTERNATIONAL BUSINESS STUDIES, 45(4), pp. 428-449, is available online at: http://dx.doi.org/10.1057/jibs.2013.68

PY - 2014/5/1

Y1 - 2014/5/1

N2 - We examine the extent to which Chinese government support of foreign direct investment (FDI) projects and host country institutional environments interact with prior entry experience by Chinese firms, and how this interrelationship affects FDI undertaken by Chinese firms. We hypothesize that home country government support and well-established host country institutions enhance organizational capabilities to take risks in FDI. As such, they reduce the need to accumulate experiential knowledge and capabilities relating to entering host countries based on prior entry experience in a particular country when undertaking follow-up investment projects. Using a unique, hand-collected panel data set of Chinese publicly listed firms during 2002?2009, we find that home government support and well-developed host country institutions reduce the importance of prior entry experience and significantly increase the likelihood of FDI entry into a host country. Further, from our subsample analyses we identify differences between entering developed and developing host countries in terms of the impact of home country government support and quality of host country institutions. Our findings help explain the puzzle concerning why emerging economy firms have rapidly internationalized in a short period of time and do not follow the pattern predicted by classical IB theories.

AB - We examine the extent to which Chinese government support of foreign direct investment (FDI) projects and host country institutional environments interact with prior entry experience by Chinese firms, and how this interrelationship affects FDI undertaken by Chinese firms. We hypothesize that home country government support and well-established host country institutions enhance organizational capabilities to take risks in FDI. As such, they reduce the need to accumulate experiential knowledge and capabilities relating to entering host countries based on prior entry experience in a particular country when undertaking follow-up investment projects. Using a unique, hand-collected panel data set of Chinese publicly listed firms during 2002?2009, we find that home government support and well-developed host country institutions reduce the importance of prior entry experience and significantly increase the likelihood of FDI entry into a host country. Further, from our subsample analyses we identify differences between entering developed and developing host countries in terms of the impact of home country government support and quality of host country institutions. Our findings help explain the puzzle concerning why emerging economy firms have rapidly internationalized in a short period of time and do not follow the pattern predicted by classical IB theories.

KW - international experience

KW - foreign direct investment

KW - outward FDI

KW - institutional environment

KW - knowledge-based view

KW - multilevel analysis

U2 - 10.1057/jibs.2013.68

DO - 10.1057/jibs.2013.68

M3 - Article

VL - 45

SP - 428

EP - 449

JO - Journal of International Business Studies

JF - Journal of International Business Studies

SN - 0047-2506

IS - 4

ER -

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