TY - JOUR
T1 - Experiential drivers of foreign direct investment by late-comer Asian firms
T2 - The Chinese evidence
AU - Cui, Lin
AU - Li, Yi
AU - Li, Zijie
PY - 2013/12
Y1 - 2013/12
N2 - 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.
AB - 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.
KW - Asian emerging economy
KW - Event history analysis
KW - Foreign direct investment
KW - International experience
KW - Managerial cognition
KW - Top management team
UR - http://www.scopus.com/inward/record.url?scp=84883776952&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2013.05.034
DO - 10.1016/j.jbusres.2013.05.034
M3 - Article
SN - 0148-2963
VL - 66
SP - 2451
EP - 2459
JO - Journal of Business Research
JF - Journal of Business Research
IS - 12
ER -