Financial crisis of 2008 and outward foreign investments from China and India

Athreye, Suma; Saeed, Abubakr; Baloch, Muhammad Saad

doi:10.1016/j.jwb.2021.101190

Cited by 19 publications

(11 citation statements)

References 101 publications

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“…The authors of [36] studied the impact of protectionism of property rights on the behavior pattern of multinational companies, and found that institutional performance was strongly correlated with the FDI ratio to total domestic investment. The property right importance for FDI attraction has been confirmed by the study of [37].…”

Section: Literature Reviewmentioning

confidence: 67%

Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

et al. 2021

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This study explores the bicausality between institutional quality and FDI inflow both aggregated and sector-wise, i.e., the agricultural, manufacturing, and tertiary sectors in the Indian economy, by applying simulated autoregressive distributed lag (SARDL) dynamic new techniques, an extended variant of orthodox ARDL and NARDL. The study confirms that aggregated and sectorial FDI are enhanced by adequate institutional quality, and similarly, FDI promotes quality institutions. The nexus between institutional quality and FDI inflow is an inspiration for India to compete with developed economies by enhancing its institutional quality. The study observes cointegration and bidirectional causality between institutional quality and aggregated FDI.

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Section: Literature Reviewmentioning

confidence: 67%

Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

et al. 2021

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“…This study used this technique to control number of econometric issues related to estimation. The system GMM estimation technique controls several issues, such as autoregressive problem, heteroskedasticity, and potential endogeneity, and thus provides robust estimates (Arellano & Bond, 1991; Athreye et al, 2021; Roodman, 2009). Also, system GMM offers two sorts of robustness tests, that is, Hansen test and Arellano–Bond (AB) test, to determine the validity of results by checking whether estimation suffers from overidentification and serial correlation issues.…”

Section: Methodsmentioning

confidence: 99%

Pursuing sustainability development goals through adopting gender equality: Women representation in leadership positions of emerging market multinationals

Saeed

Riaz

Baloch

2022

European Management Review

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This study examines the competitive disadvantages rationale behind the pursuing of Sustainability Development Goals (SDGs) by emerging market multinational corporations (EM‐MNCs) in foreign markets. We argue that EM‐MNCs may pursue gender equality goal in host markets as a legitimation strategy to offset their strategic disadvantages inherited from the home markets. Based on a sample of foreign subsidiaries from 10 major emerging countries from 2010 to 2020, this study finds strong evidence demonstrating that the institutional quality of home markets exerts a positive effect on the representation of women in leadership positions of EM‐MNCs. Additional analyses demonstrate that international experience and institutional ownership further magnify this effect.

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“…the country of origin would be associated with foreignness because the home country can provide the necessary support in the development of resources and capabilities (Athreye et al, 2021), creating the potential for institutional asymmetry between the home and host countries and enhancing FSAs unavailable to domestic rivals (Cuervo-Cazurra et al, 2018). Athreye et al (2021) also note that foreign investment of Chinese firms is mainly driven by assets built in domestic markets and studying China's Haier group shows that advantages associated with government support played important roles in internationalising.…”

Section: The Foreignness Effectmentioning

confidence: 99%

“…For instance, CMNEs of green energy and high tech industries favoured by China's 13th Five-Year National Plan development policy enjoy AOF when the host countries acknowledge China's support in terms of political aid, economic support, or philanthropic work from CMNEs (Cui and Jiang, 2012), resulting in the support of outward foreign direct investments (OFDIs) (He and Lyles, 2008;Li et al, 2014). Athreye et al (2021) suggest that government-related ownership advantages shape Chinese firms' level, location and type of overseas investment. Chinese overseas acquisitions are more commonly carried out due to country-specific government financial support.…”

Section: 22mentioning

confidence: 99%

“…China and Huawei, South Korea and Samsung), meaning customers often use the country of origin as a cue for the quality of the product and are therefore more willing to pay a premium for it. In this way, the country of origin would be associated with foreignness because the home country can provide the necessary support in the development of resources and capabilities (Athreye et al. , 2021), creating the potential for institutional asymmetry between the home and host countries and enhancing FSAs unavailable to domestic rivals (Cuervo-Cazurra et al ., 2018).…”

Section: Developing An Integrated Frameworkmentioning

confidence: 99%

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The foreignness effect on internationalisation depth: the perspective of multicomplexity and the duality of foreignness

Yen

Lin

Shih

2022

IJOEM

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PurposeThe literature on foreignness has, to date, stressed the liability of foreignness (LOF) and the advantage of foreignness (AOF). Drawing on industrial organisation theory, institutional theory, the resource-based view of the firm and the literature on networking, the authors’ research develops an integrated framework to explore the impact of foreignness on internationalisation depth from the perspective of the duality of foreignness (LOF versus AOF) within multiple dimensions. These dimensions are isomorphism, home country of origin, institutional distance and dual embeddedness of multinational enterprises (MNEs).Design/methodology/approachIn this study, the authors empirically test hypotheses arising from this new theoretical framework by examining the characteristics of a sample of 324 Chinese MNEs (CMNEs) that were operating in 63 countries from 1999 to 2018. Employing regression analysis on a panel of 9,410 observations, the results show that foreignness does exhibit multilevel complexity and duality.FindingsThe authors’ empirical results show that isomorphism pressures, country of origin and institutional distance have a negative effect on internationalisation depth (as an outcome of LOF) but that dual embeddedness, on the part of MNEs, exerts a positive impact on internationalisation depth (as an outcome of AOF). The implications for research on multilevel complexity and the duality of foreignness are discussed, and managerial implications are outlined.Research limitations/implicationsThe implications of the authors’ findings for MNEs should not be generalised to developed countries without examining the characteristics of both China as an emerging country and its MNEs. The second limit is regarding ownership; this framework has limitations due to choosing China and its OFDIs for testing internationalisation depth. Finally, for subsequent research, examining the dynamics of foreignness completes the nature of multicomplexity, defined by external and internal factors of foreignness changing over time and space.Practical implicationsCMNE managers are advised to actively scrutinise their behaviours in the local country to overcome the differences in routines, values and practices inherent in local institutions (Chen et al., 2019). The results imply that CMNEs should be careful not to overuse their home country image when penetrating a new market. Thus, a strategy to reduce a home government's hegemonic or otherwise negative image may be wise when operating abroad. Finally, the authors’ model suggests that CMNEs equipped with great RCN CIPs for identifying, scanning and interpreting local institutions can enhance internationalisation depth.Originality/valueThe authors’ research contributes to research on foreignness by emphasising foreignness as a construct of multilevel complexity. The authors argue that foreignness arises due to varying factors at the host, home, host-home levels and at the level of the organisational entity. The authors’ definition of foreignness and empirical results supports the notion that isomorphism pressures (host country-level factors), country-of-origin of home country (home country-level factors) and institutional distance (host-home country-level factors) are inextricably negatively linked with internationalisation depth (as effects of LOF). By contrast, the dual embeddedness of MNEs (the factor of organisational level) represents a positive relationship with internationalisation depth (as effects of AOF).

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Financial crisis of 2008 and outward foreign investments from China and India

Cited by 19 publications

References 101 publications

Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

Pursuing sustainability development goals through adopting gender equality: Women representation in leadership positions of emerging market multinationals

The foreignness effect on internationalisation depth: the perspective of multicomplexity and the duality of foreignness

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