TY - JOUR
T1 - State ownership of Chinese firms and their outward foreign direct investment
T2 - Political and economic contingencies
AU - Tang, Ryan W.
AU - Shu, Chengli
AU - Zhou, Kevin Z.
N1 - Publisher Copyright:
© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC part of Springer Nature.
PY - 2022/9
Y1 - 2022/9
N2 - The extant literature offers inconsistent predictions and conflicting evidence regarding the relationship between state ownership and the internationalization of emerging market firms (EMFs). Drawing on institutional theory, we examine the moderating roles of political and economic institutions at the subnational and national levels in the link between state ownership and EMFs’ outward foreign direct investment (OFDI). Based on a sample of 1421 OFDI projects involving 286 Chinese listed firms in 115 host countries between 2003 and 2016, we find that state ownership can scale up OFDI when Chinese firms are headquartered in subnational regions with high institutional development or low economic development, or when political relationships between home and host countries are amicable or market growth in a host country is slow; otherwise, state ownership hinders OFDI. These findings offer new insights into the relationship between state ownership and the internationalization of EMFs.
AB - The extant literature offers inconsistent predictions and conflicting evidence regarding the relationship between state ownership and the internationalization of emerging market firms (EMFs). Drawing on institutional theory, we examine the moderating roles of political and economic institutions at the subnational and national levels in the link between state ownership and EMFs’ outward foreign direct investment (OFDI). Based on a sample of 1421 OFDI projects involving 286 Chinese listed firms in 115 host countries between 2003 and 2016, we find that state ownership can scale up OFDI when Chinese firms are headquartered in subnational regions with high institutional development or low economic development, or when political relationships between home and host countries are amicable or market growth in a host country is slow; otherwise, state ownership hinders OFDI. These findings offer new insights into the relationship between state ownership and the internationalization of EMFs.
KW - Economic institutions
KW - Emerging market firms
KW - Outward foreign direct investment
KW - Political institutions
KW - State ownership
UR - https://www.scopus.com/pages/publications/85101781656
U2 - 10.1007/s10490-021-09756-y
DO - 10.1007/s10490-021-09756-y
M3 - 文章
AN - SCOPUS:85101781656
SN - 0217-4561
VL - 39
SP - 1097
EP - 1123
JO - Asia Pacific Journal of Management
JF - Asia Pacific Journal of Management
IS - 3
ER -
