2020
DOI: 10.1504/ejim.2020.103805
|View full text |Cite
|
Sign up to set email alerts
|

FDI drivers and establishment mode choice of emerging-market MNEs: the role of state ownership

Abstract: Drawing on an institutional perspective, this study analyses how state ownership affects the relationship between foreign direct investment (FDI) drivers and establishment mode choice of emerging-market multinational enterprises (EMNEs). We argue that state-owned EMNEs encounter stronger institutional pressures in technology-and natural resource-rich countries derived from concerns about takeovers of local companies. Moreover, in low-growth markets, state-owned EMNEs do not always behave as pure profitmaximise… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

0
7
0

Year Published

2020
2020
2023
2023

Publication Types

Select...
5

Relationship

0
5

Authors

Journals

citations
Cited by 5 publications
(7 citation statements)
references
References 81 publications
(196 reference statements)
0
7
0
Order By: Relevance
“…That state agencies intervene in the FDI decision of CMNEs, especially state-owned ones, has been established by previous research and is well documented (Quer et al, 2012(Quer et al, , 2018(Quer et al, , 2019(Quer et al, , 2020Li & Alon, 2019). The state engages its multinationals both directly (e.g., ownership and control), indirectly (e.g., regulation and incentives) and in relation to specific markets (e.g., idiosyncratic bilateral and multilateral institutional relationships).…”
Section: Host Country Political and Diplomatic Ties With China And Chinese Outward Fdi Volumesmentioning
confidence: 85%
“…That state agencies intervene in the FDI decision of CMNEs, especially state-owned ones, has been established by previous research and is well documented (Quer et al, 2012(Quer et al, , 2018(Quer et al, , 2019(Quer et al, , 2020Li & Alon, 2019). The state engages its multinationals both directly (e.g., ownership and control), indirectly (e.g., regulation and incentives) and in relation to specific markets (e.g., idiosyncratic bilateral and multilateral institutional relationships).…”
Section: Host Country Political and Diplomatic Ties With China And Chinese Outward Fdi Volumesmentioning
confidence: 85%
“…This is a dummy variable that takes the value of (1) if the firm acquired a local company and the value of (0) if it made a greenfield investment (Barkema and Vermeulen, 1998; Meyer et al ., 2014; Sun et al ., 2021b). The latter category also includes greenfield joint ventures (Brouthers and Hennart, 2007), as this has been the criterion used in some prior studies on establishment mode choice (Barkema and Vermeulen, 1998; Quer et al ., 2020a, b).…”
Section: Methodsmentioning
confidence: 99%
“…Institutional distance between countries has been widely used in prior studies analyzing the determinants of establishment mode choice. Empirical evidence reports that institutional distance increases uncertainty, leading the foreign investor to prefer an acquisition rather than a greenfield investment (Chen et al ., 2017; Quer et al ., 2020b). This is because the former entails the integration of an existing firm with a management team that knows local conditions, which may reduce the associated uncertainty (Dikova and van Witteloostuijn, 2007).…”
Section: Theory and Hypothesis Developmentmentioning
confidence: 99%
See 2 more Smart Citations