Experiential drivers of foreign direct investment by late-comer Asian firms: The Chinese evidence

Lin Cui*, Yi Li, Zijie Li

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    27 Citations (Scopus)

    Abstract

    Focusing on the cognitive process of managerial decision making, we argue that both organizational and personal international experiences contribute to managerial knowledge structure which in turn influences firms' foreign direct investment decisions. Given the decision task context of late-comer Asian firms, the two types of experiences can lead to decision outcomes that compete for limited decision making resources, and therefore their interaction effect is expected to be negative. Based on a sample of 164 Chinese electronic manufacturing firms over an eight-year period (2001-2008), we found substantial support for our hypotheses. While both organizational and personal international experiences increase the foreign direct investment propensity of a firm, these experiences also weaken each other's effects.

    Original languageEnglish
    Pages (from-to)2451-2459
    Number of pages9
    JournalJournal of Business Research
    Volume66
    Issue number12
    DOIs
    Publication statusPublished - Dec 2013

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