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Motives for Outward FDI of Chinese Private Firms Firm Resources, Industry Dynamics, and Government Policies

Published online by Cambridge University Press:  02 February 2015

Jiangyong Lu
Affiliation:
Peking University, China
Xiaohui Liu
Affiliation:
Loughborough University, UK
Hongling Wang
Affiliation:
Chinese Academy of Social Sciences, China

Abstract

Using recent survey data, this study examines the impact of firm resources, industry dynamics, and government policies on the outward foreign direct investment (FDI) motives of Chinese firms, based on the integrated ‘strategy tripod’ framework. The results suggest that supportive government policies are important motivators for both strategic asset-seeking and market-seeking outward FDI. Firms' technology-based competitive advantages and a high level of industry research and development (R&D) intensity tend to motivate strategic asset-seeking outward FDI, whereas firm's export experience and higher level of domestic industry competition tend to induce market-seeking outward FDI.

Type
Special Issue Articles
Copyright
Copyright © International Association for Chinese Management Research 2011

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