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Home country supportiveness/unfavorableness and outward foreign direct investment from China

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Abstract

What drives the outward foreign direct investments (OFDIs) by emerging market firms (EMFs)? Drawing on a strategy tripod framework, this article proposes a theoretical model to predict OFDI by EMFs from China. Specifically, we use institution- and industry-based views to examine two facets of home country environment, namely, the supportiveness from home government and unfavorableness from home industry, as important determinants of OFDI, and compare the relative strength of these effects. Further, we use the resource-based view to argue that the effect of the home country environment is contingent on the international experience portfolios of EMFs.

Résumé

Qu’est-ce qui motive les investissements directs étrangers sortants (IDES) des entreprises issues des marchés émergents (EME) ? S’appuyant sur un cadre stratégique à trois pieds, cet article propose un modèle théorique pour prédire les IDES des EME de Chine. Plus précisément, nous utilisons des perspectives institutionnelles et industrielles pour étudier deux facettes de l’environnement du pays d’origine, à savoir le soutien du gouvernement domestique et le caractère défavorable de l’industrie domestique, comme déterminants importants des IDES ; et nous comparons le poids relatif de ces effets. En outre, nous utilisons l’approche fondée sur les ressources pour argumenter que l’effet de l’environnement du pays d’origine dépend des portefeuilles d’expériences internationales des EME.

Resumen

¿Qué impulsa las inversiones extranjeras directas hacia afuera de las empresas de mercados emergentes? Basándonos en el marco del trípode de estrategia, este artículo propone un modelo teórico para predecir que impulsa la inversión extranjera directa hacia afuera de las empresas de China. Específicamente usamos puntos de vista basados en la institución y la industria para examinar dos facetas del entorno del país de origen, es decir, el apoyo del gobierno del país anfitrión y lo desfavorable de la industria doméstica, como determinantes importantes de la inversión extranjera directa hacia fuera y comparar las fortalezas relativas de estos efectos. Además, usamos la perspectiva basada en recursos para argumentar que los efectos del entorno del país de origen está supeditado a los portafolios de experiencia internacional de las inversiones extranjeras directas.

Resumo

O que define os investimentos estrangeiros diretos externos (OFDIs) por empresas de mercados emergentes (EMFs)? Com base em um modelo de estratégia trípede, este artigo propõe um modelo teórico para prever o OFDI por EMFs da China. Especificamente, utilizamos visões baseadas em instituições e na indústria para examinar duas facetas do ambiente do país de origem, ou seja, o apoio do governo doméstico e a desfavorabilidade da indústria doméstica, como determinantes importantes do OFDI e comparamos a força relativa desses efeitos. Além disso, usamos a visão baseada em recursos para argumentar que o efeito do ambiente do país de origem depende do portfólio de experiências internacionais de EMFs.

摘要

新兴市场公司(EMFs)对外直接投资(OFDI)的驱动力是什么?借鉴战略三脚架框架,本文提出了一个预测来自中国的EMFs的OFDI的理论模型。具体地说,我们运用制度基础观和产业基础观来考察本国环境的两个方面,即本国政府的支持和本国产业的不利性,作为OFDI的重要决定因素,并比较这些影响的相对力度。进一步,我们运用资源基础观认为,本国环境的影响取决于EMFs的国际经验组合。

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Acknowledgements

We are grateful to the area editor Professor Mariko Sakakibara and the anonymous reviewers for their constructive comments and suggestions that have helped significantly improve the article. We also acknowledge support from the GRF Grants by HKSAR (Nos. 14501714, 14504715).

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Authors and Affiliations

  1. Rutgers Business School, Rutgers University, Newark, NJ, USA

    Ajai S Gaur

  2. Department of Management, CUHK Business School, The Chinese University of Hong Kong, Shatin, New Territories, Hong Kong SAR

    Xufei Ma

  3. Henley Business School, University of Reading, Reading, UK

    Zhujun Ding

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Correspondence to Xufei Ma.

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Accepted by Mariko Sakakibara, Area Editor, 4 December 2017. This article has been with the authors for four revisions.

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Gaur, A.S., Ma, X. & Ding, Z. Home country supportiveness/unfavorableness and outward foreign direct investment from China. J Int Bus Stud 49, 324–345 (2018). https://doi.org/10.1057/s41267-017-0136-2

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