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Asia Pacific Journal of Management

Erschienen in:

21.12.2019

Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises

verfasst von: Huiying Luo, Xiaohui Liu, Aiqi Wu, Xiaotong Zhong

Erschienen in: Asia Pacific Journal of Management | Ausgabe 4/2021

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Abstract

This study explores the impact of local protectionism on outward foreign direct investment (OFDI) and how firms respond to local protectionism in a transition economy. We find that local protectionism exerts a negative effect on the OFDI decisions of Chinese privately-owned enterprises (POEs). However, this negative impact is weakened by POEs’ corporate philanthropy strategy, whereas corporate political activity reinforces such an impact. This research extends the lens of institutional escapism by highlighting local protectionism as a barrier to OFDI and provides new insights into how firms respond to the subnational environment by adopting various nonmarket strategies.

Vorheriger Artikel The internationalization of new ventures in an emerging economy: The shifting role of industry concentration

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Titel: Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises
verfasst von: Huiying Luo
Xiaohui Liu
Aiqi Wu
Xiaotong Zhong
Publikationsdatum: 21.12.2019
Verlag: Springer US
Erschienen in: Asia Pacific Journal of Management / Ausgabe 4/2021
Print ISSN: 0217-4561
Elektronische ISSN: 1572-9958
DOI: https://doi.org/10.1007/s10490-019-09697-7

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