Performance feedback on sales growth goal and OFDI location choices for firms in emerging economies

Xie, En; Fang, Alex Junyi; Chen, Xin; Zhan, Wei; Kumar, Vikas

doi:10.1016/j.jwb.2022.101343

Cited by 23 publications

(5 citation statements)

References 105 publications

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“…On the one hand, MNEs with a high degree of international experience can make more efficient use of migrant networks to obtain various types of information in the host country at a low cost to improve the accuracy of OFDI decisions. On the other hand, MNEs with a high degree of international experience have stronger information identification ability (Xie et al, 2022). They can track and aggregate the vast amount of information collected by the migration networks of different host countries in a timely manner, which is conducive to identifying potential investment opportunities.…”

Section: Resultsmentioning

confidence: 99%

Migrant networks, international experience, and OFDI by EMNEs: Evidence from China

et al. 2023

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The impact of international migrant networks on outward foreign direct investment (OFDI) by multinational enterprises (MNEs) is an emerging research topic in the field of international business. Based on the data of A‐share listed companies from 2008 to 2020 in China, this study analyzes the impact of international migrant networks on OFDI by MNEs and further examines the moderating effect of firms' international experience. Our findings suggest that migrant networks have a facilitating effect on OFDI by MNEs, and firms' international experience plays a positive moderating role in the above relationship. We also find that the facilitation effect of migrant networks on OFDI by MNEs is more obvious in the context of greater geographical and cultural distance, indicating the positive effect of migrant networks in reducing information asymmetry and transaction costs. In addition, the facilitation effect of migrant networks on OFDI by MNEs is more significant in the subsample of the service industry. Our study contributes to the literature by providing new insights into the relationship between migrant networks and international expansion behavior.

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Section: Resultsmentioning

confidence: 99%

Migrant networks, international experience, and OFDI by EMNEs: Evidence from China

et al. 2023

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“…Clough and Piezunka, 2020; Kavusan and Frankort, 2019; Martínez-Noya and García-Canal, 2021), and internationalization (e.g. Deng et al, 2022; Dong et al, 2022; Xie et al, 2022; Xu et al, 2020).…”

Section: Background and Literature Reviewmentioning

confidence: 99%

Why embrace a double-edged sword? A behavioral theory of board political capital building

Gao

Martin²,

et al. 2022

Strategic Organization

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Firm political connections are widely recognized to have both positive and negative implications, but why do firms build political connections in the first place? Distinct from prior research that typically views firm political connections as capital stock, we focus on board political capital building—selecting new directors with political backgrounds (PBs)—as a strategic decision. Drawing on the behavioral theory of the firm (BTOF), we examine how board political capital building is driven by performance shortfalls based on the logic of problemistic search—seeking the potential benefits of political connections while undertaking the potential downsides. Using director selection data on Chinese listed firms, we find that firms with higher performance shortfalls are more inclined to select new independent directors (IDs) with PBs. We further demonstrate that it is more feasible for firms with performance shortfalls to build lower-level board political capital but infeasible for them to build upper-level political capital.

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“…The main entities undertaking outward foreign direct investment (OFDI) were previously enterprises from developed nations that invested in economies whose development level was similar to or less than their country of origin (UNCTAD, 2002). The last two decades have witnessed the developing economies emerge as active sources of OFDI (Xie et al., 2022). In other words, the internationalization of their enterprises has transformed from being export‐oriented to that of outward investment.…”

Section: Introductionmentioning

confidence: 99%

The effectiveness of government incentives for outward investment: The case of China's Belt and Road Initiative

Xu,

Yang,

Zheng

2024

Contemporary Economic Policy

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Chinese government introduced a package of incentives to encourage enterprise internationalization under the 2013 Belt and Road Initiative. There is regional variation of this policy incentive, based on which, we examine its impact on listed firms' outward investment. The results evident resource misallocation in firms in specific industries which received incentives; instead of utilizing them for overseas investment, the beneficiary firms were directed toward increasing domestic investment. Contrarily, firms in industries that were not incentivized (restricted industries whose domestic development is not encouraged) were inclined to engage in overseas investment. We provide possible explanations.

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Performance feedback on sales growth goal and OFDI location choices for firms in emerging economies

Cited by 23 publications

References 105 publications

Migrant networks, international experience, and OFDI by EMNEs: Evidence from China

Migrant networks, international experience, and OFDI by EMNEs: Evidence from China

Why embrace a double-edged sword? A behavioral theory of board political capital building

The effectiveness of government incentives for outward investment: The case of China's Belt and Road Initiative

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