Publication Type

Journal Article

Version

publishedVersion

Publication Date

7-2007

Abstract

Past literature on foreign direct investment generally supports an economics perspective that there is a direct relationship between firm-specific ownership advantages and international expansion. However, in emerging economies, with their institutional environment context characterized by low resource munificence and continuous economic liberalization, a theoretical extension of the current perspective is needed. This paper introduces new parameters by focusing on specific ownership advantages and strategic actions that firms have to develop in response to the institutional characteristics of the emerging economies when they decide to pursue outward FDI. The focus here is on international venturing that requires a firm to engage in activities for new business creation in a foreign country rather than simply seek to distribute a product in another nation. It is shown empirically that the relationship between firm- specific ownership advantages and international venturing is moderated by the degree of home industry competition and export intensity. In addition, such a relationship is mediated by the intensity of corporate entrepreneurial transformation in the form of innovation, new business creation, and strategic renewal.

Keywords

Firm capabilities; International venturing; Networks; Corporate entrepreneurship; China

Discipline

Business and Corporate Communications | International Business

Research Areas

Strategy and Organisation

Publication

Journal of International Business Studies

Volume

38

Issue

4

First Page

519

Last Page

540

ISSN

0047-2506

Identifier

10.1057/palgrave.jibs.8400278

Publisher

Palgrave Macmillan

Additional URL

https://doi.org/10.1057/palgrave.jibs.8400278

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