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Erschienen in:
2006 | OriginalPaper | Buchkapitel
Foreign Direct Investment Communities and the Legitimation of Wholly-Owned Foreign Subsidiaries in China
verfasst von : Jiatao Li, Jing Yu Yang
Erschienen in: Emerging Multiplicity
Verlag: Palgrave Macmillan UK
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In this chapter, data on the establishment of wholly-owned foreign subsidiaries in China are used to study to what extent the prior existence of wholly-owned subsidiaries in a host country has the effect of legitimizing this form of subsidiary. The legitimization process is explored applying institutional and ecological perspectives at the population level, rather than as a firm-level phenomenon. The results will show that the establishment of wholly-owned subsidiaries was related to the prior existence of both wholly-owned subsidiaries and joint ventures in China, and that this legitimizing effect spilled over from foreign investors in other industries and from other home countries.