Clegg, J, Lin, HM, Voss, H et al. (2 more authors) (2016) The OFDI Patterns and Firm Performance of Chinese Firms: The Moderating Effects of Multinationality Strategy and External Factors. International Business Review, 25 (4). pp. 971-985. ISSN 0969-5931
Abstract
The purpose of this paper is to examine how multinationality strategy, home political influence, and host-country risk explain the performance consequences of OFDI patterns of firms in the most important emerging economy, China. Two main patterns of OFDI (‘born global’ natured multiple simultaneous and IP-natured gradually growing) have been dominant in China during its first OFDI as a latecomer. In contrast to the conventional IP argument, we hypothesize that the multiple simultaneous pattern of a born-global nature leads to better performance. We also hypothesize that firm multinationality strategy and home political influence play greater roles in enhancing the performance effect of the multiple simultaneous pattern than another pattern, i.e., IP-natured gradually growing pattern. Using panel data of 4619 observations from 261Chinese publicly listed firms from 1991 to 2011, we find a superior performance effect for the multiple simultaneous pattern. Further, we find a greater moderating effect of firm multinationality strategy and home political influence affecting the OFDI and performance relationship undertaken by the multiple simultaneous pattern than by the gradually growing pattern. Our study extends understanding of OFDI patterns in emerging economies and suggests that the analysis of performance consequences should focus on external and firm factors that may facilitate the performance effect.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | (c) 2016, Elsevier Ltd. This is an author produced version of a paper published in International Business Review. Uploaded in accordance with the publisher's self-archiving policy |
Keywords: | OFDI pattern; Multinationality strategy; Home political influence; Performance effect |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 07 Jul 2016 11:08 |
Last Modified: | 20 Sep 2017 04:08 |
Published Version: | http://dx.doi.org/10.1016/j.ibusrev.2016.01.010 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.ibusrev.2016.01.010 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:102182 |