Buckley, P, Chen, L, Clegg, LJ et al. (1 more author) (2016) Experience and FDI Risk-taking: A Microfoundational Reconceptualization. Journal of International Management, 22 (2). pp. 131-146. ISSN 1075-4253
Abstract
Studies of how firms respond to host country risk have assigned explanatory primacy to organizational capability and managerial risk preference. The organization-level account is built on the premise that capability is a prerequisite for risk-taking while the individual-level account focuses on the managers’ intrinsic behavioral attitude. Without integrating one with the other, the former is open to many alternative explanations while the latter remains only a source of heterogeneity. We propose that employing the microfoundations approach can address the limitations of each account and yield a fuller understanding of FDI risk-taking. Drawing upon behavioral decision theory and the concept of risk propensity, we describe the lower-level mechanisms that generate the empirical regularity between firm experience and risk-taking, which has been attributed to the macro-level capabilities paradigm. We finalize the framework with an account as to how individual-level mechanisms can be incorporated into the context of organizational strategic decision-making.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2016, Elsevier. This is an author produced version of a paper published in Journal of International Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | country risk; risk propensity; microfoundations; behavioral decision-making; experience |
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: | 28 Apr 2016 15:00 |
Last Modified: | 26 Mar 2018 00:38 |
Published Version: | http://dx.doi.org/10.1016/j.intman.2016.02.001 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.intman.2016.02.001 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:95949 |