Heterogeneity of political connections and outward foreign direct investment

Item Type Journal paper
Abstract

By examining the heterogeneity of political connections (PCs), this study reconceptualises the relationship be-tween PCs and outward foreign direct investment (OFDI). Drawing upon resource dependence theory, we hypothesise that firms with ascribed PCs benefit from top political privileges in their home market and have a low OFDI commitment. Firms without any PCs have a medium OFDI commitment because they have to avoid the discriminative competition associated with their inferior political status. Firms with acquired PCs possess relatively strong political and market resources and face exchange pressure; thus, they exhibit a high OFDI commitment. The aforementioned hypotheses are supported by empirical results from probit and Tobit models based on panel data of 482 listed Chinese firms with OFDI from 2003 to 2014

Authors Deng, Ziliang; Yan, Jiayan & van Essen, Marc
Journal or Publication Title International Business Review
Language English
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area Global Center for Entrepreneurship + Innovation
Refereed Yes
Date 2018
Publisher Pergamon Press
Volume 27
Number 4
Page Range 893-903
ISSN 0969-5931
Depositing User Prof. Dr. Marc van Essen
Date Deposited 28 Nov 2018 14:14
Last Modified 28 Nov 2018 14:15
URI: https://www.alexandria.unisg.ch/publications/255877

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Citation

Deng, Ziliang; Yan, Jiayan & van Essen, Marc (2018) Heterogeneity of political connections and outward foreign direct investment. International Business Review, 27 (4). 893-903. ISSN 0969-5931

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https://www.alexandria.unisg.ch/id/eprint/255877
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