Session 10

FDI

Track A

Date: Saturday, December 15, 2012

 

Time: 17:00 – 18:15

Paper

Room: Meeting Room 2


Session Chair:

  • Prem Ramburuth, University of New South Wales

Title: Determinants of EU Firms’ FDI in China: A Static & Dynamic Test of Eclectic Paradigm

Authors

  • Huifen Cai, Middlesex University London

Abstract: The paper investigates the determinants of European Union foreign direct investment in the Chinese market using a newly available data set of 680 EU firms for the period of 1998-2007 from the State Statistical Bureau of China. The theoretical framework of the paper builds on Dunning's ownership–location–internalization paradigm, incorporating the host country institutional factors to test international production by EU firms in an emerging market. We find that FDI is positively related to institutional change. However, some other factors such as firm technology, personal share, profitability, wages and rule of law reveal unexpected results. The findings have important implications for practitioners and policymaking.

Title: Does Inward FDI Promote or Hinder Outward FDI? IJVs in the Chinese Automotive Industry

Authors

  • Ying Liu, Peking University
  • Minghua Li, Copenhagen Business School
  • Jiangyong Lu, Peking University
  • Changqi Wu, Peking University

Abstract: In this paper we evaluate the mechanisms underlying dynamic linkages between inward FDI and outward internationalization in the Chinese automobile industry. While several studies have examined the relationship between outward and inward investment using empirical data, this is among the first to employ a case study approach to investigate how international joint ventures (IJVs) established between foreign and Chinese carmakers can shape their internationalization speed, proclivity, and degree. We discuss some unique features of carmakers with and without IJVs to elucidate how firms without IJVs may be more driven to expand internationally while firms with IJVs may face constraints from venturing abroad. Our study further delineates strategies for how automakers without IJVs may rely on external growth to springboard back into the domestic car market.

Title: Domestic Joint Venture Experience and the Internationalization of Chinese Firms

Authors

  • Linda Rademaker, BI Norwegian Business School
  • Xavier Martin, Tilburg University

Abstract: Despite their increasing global presence, little is known about the drivers of foreign direct investment by Chinese firms and the nature of these foreign ventures. This paper examines how joint ventures between MNEs and Chinese firms in China affect the likelihood of international expansion of Chinese firms and the entry mode chosen upon internationalization. Using a sample of FDI in- and outflows in China for the period 1978-2011 we find a positive effect of joint venture experience on the propensity of Chinese firms to conduct FDI in the United States, with strong country effects. In addition, these country effects significantly affect the entry mode chosen upon internationalization.

Title: Painted With the Same Brush: Negative Reputation Spillover Among Emerging Market Firms Going Public Abroad

Authors

  • Xiwei Yi, Rice University

Abstract: While the internationalization of emerging market companies has been an important topic in international business research, little attention has been assigned to the phenomenon that emerging market companies going public abroad. In this paper, we propose that emerging market companies going public in developed market confront the questioning of legitimacy and are vulnerable to negative reputation spillover due to the stereotype of country-of-origin. We also propose that reputable underwriter and positive media exposure help alleviate the negative reputation spillover. We choose U.S-listed Chinese companies through IPO procedure as our sample and the exposure of accounting frauds of backdoor-listed Chinese companies as the context to conduct empirical analysis.

All Sessions in Track A...

Sat: 09:00 – 09:30
Session 35: Conference Welcome
Sat: 09:30 – 10:45
Session 30: Keynote Plenary Panel: Competing and Cooperating in and for China
Sat: 11:15 – 12:30
Session 4: Competition and Adaptation
Session 11: Firm Boundaries and Growth
Session 19: Global Strategy
Session 26: Entrepreneurship in China
Sat: 13:45 – 15:00
Session 31: Plenary Panel II: Collaborative Strategies in and for China
Sat: 15:30 – 16:45
Session 6: CSR and Sustainable Development
Session 7: Entrepreneurship
Session 9: Executives and Incentives
Session 22: Panel: Innovation
Session 24: Managing Innovation Strategies
Sat: 17:00 – 18:15
Session 5: Corporate Governance
Session 8: Evolution and Ecosystems
Session 10: FDI
Session 12: Innovation Strategy
Session 27: FDI and Institutions
Sun: 09:00 – 10:15
Session 32: Plenary Panel III: Corporate Governance and Executive Leadership in the Age of Globalization
Sun: 10:45 – 12:00
Session 13: Institutions
Session 15: Internationalization II
Session 16: Networks
Session 29: Resources and Capabilities
Sun: 13:45 – 15:00
Session 33: Plenary Panel IV: Strategic Management Research in China - What is Next?
Sun: 15:30 – 16:45
Session 3: Alliances and Cooperation
Session 14: Internationalization I
Session 17: Social Capital
Session 28: Governance, Knowledge, and Cooperation
Sun: 17:00 – 18:00
Session 34: Executives Plenary Panel: Innovation Strategy in China


Strategic Management Society

China