Skip navigation
Skip navigation

Behind ownership decision of Chinese outward FDI: Resources and institutions

Cui, Lin; Jiang, Fuming

Description

This paper examines ownership decision of Chinese outward foreign direct investment (FDI) with a focus on the choice between a wholly owned subsidiary and a joint venture entry mode. Based on literature review and findings from our case study of ten Chinese outward investing firms, we develop a conceptual framework that integrates the resource-based and institution-based views of international business strategy. The framework reflects special characteristics of Chinese outward FDI. On the...[Show more]

dc.contributor.authorCui, Lin
dc.contributor.authorJiang, Fuming
dc.date.accessioned2015-12-08T22:16:25Z
dc.date.available2015-12-08T22:16:25Z
dc.identifier.issn0217-4561
dc.identifier.urihttp://hdl.handle.net/1885/30669
dc.description.abstractThis paper examines ownership decision of Chinese outward foreign direct investment (FDI) with a focus on the choice between a wholly owned subsidiary and a joint venture entry mode. Based on literature review and findings from our case study of ten Chinese outward investing firms, we develop a conceptual framework that integrates the resource-based and institution-based views of international business strategy. The framework reflects special characteristics of Chinese outward FDI. On the resource side, Chinese outward FDI is both asset exploiting and asset augmenting, and accordingly, both transaction costs and strategic intents have an impact on the FDI ownership decision of Chinese firms. On the institution side, when investing overseas, Chinese firms adjust their entry strategies to attain regulative and normative institutional legitimacy in host countries. Meanwhile, they also need to comply with the rules set by the Chinese government, which provide incentives to and impose restrictions on Chinese firms' FDI ownership decisions.
dc.publisherKluwer Academic Publishers
dc.sourceAsia Pacific Journal of Management
dc.subjectKeywords: Case study; Chinese firms; Conceptual framework; FDI ownership decision; Joint venture; Wholly owned subsidiary
dc.titleBehind ownership decision of Chinese outward FDI: Resources and institutions
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolumeonline 5 March 2009
dc.date.issued2009
local.identifier.absfor150308 - International Business
local.identifier.ariespublicationu4024396xPUB76
local.type.statusPublished Version
local.contributor.affiliationCui, Lin, College of Business and Economics, ANU
local.contributor.affiliationJiang, Fuming, College of Business and Economics, ANU
local.bibliographicCitation.startpage24
local.identifier.doi10.1007/s10490-009-9136-5
dc.date.updated2016-02-24T10:28:13Z
local.identifier.scopusID2-s2.0-77957366116
CollectionsANU Research Publications

Download

There are no files associated with this item.


Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  17 November 2022/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator