Publication Type
Journal Article
Version
publishedVersion
Publication Date
9-2014
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.
Keywords
Resource dependence theory, Interdependence, State ownership, Outward foreign direct investment, Emerging market firm
Discipline
Business | Finance and Financial Management | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Strategic Management Journal
Volume
35
Issue
9
First Page
1343
Last Page
1363
ISSN
0143-2095
Identifier
10.1002/smj.2157
Publisher
Wiley
Citation
XIA, Jun; MA, Xufei; LU, Jane W.; and YIU, Daphne W..
Outward foreign direct investment by emerging market firms: A resource dependence logic. (2014). Strategic Management Journal. 35, (9), 1343-1363.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7320
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1002/smj.2157