Heterogeneity of political connections and outward foreign direct investment
Journal
International Business Review
ISSN
0969-5931
Type
journal article
Date Issued
2018
Author(s)
Abstract (De)
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
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
Global Center for Entrepreneurship + Innovation
Refereed
Yes
Publisher
Pergamon Press
Volume
27
Number
4
Start page
893
End page
903
Subject(s)
Eprints ID
255877
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Name
Deng et al_2018.pdf
Size
386.86 KB
Format
Adobe PDF
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