Past literature on foreign direct investment generally supports an economics perspective that there is a direct relationship between firm-specific ownership advantages and international expansion. However, in emerging economies, with their institutional environment context characterized by low resource munificence and continuous economic liberalization, a theoretical extension of the current perspective is needed. This paper introduces new parameters by focusing on specific ownership advantages and strategic actions that firms have to develop in response to the institutional characteristics of the emerging economies when they decide to pursue outward FDI. The focus here is on international venturing that requires a firm to engage in activities for new business creation in a foreign country rather than simply seek to distribute a product in another nation. It is shown empirically that the relationship between firm-specific ownership advantages and international venturing is moderated by the degree of home industry competition and export intensity. In addition, such a relationship is mediated by the intensity of corporate entrepreneurial transformation in the form of innovation, new business creation, and strategic renewal. Journal of International Business Studies (2007) 38, 519–540. doi:10.1057/palgrave.jibs.8400278
In examining the global landscape, it is clear that some cultures produce many more entrepreneurs than others. To explore this phenomenon, we take a cognitive perspective because it is assumed that the way one thinks has a significant impact on the intention to start a new business. Through the development of this model we clarify why some Individuals across different cultures tend to be more prolific in starting new ventures than others both Inside and outside the home country. In illustrating the model, the Chinese population and their high propensity to start new businesses when they migrate to new countries are discussed. Implications for competitive advantage and other areas of cross-cultural research are made.
This study examines the effects of corporate governance mechanisms on CSR performance in an emerging economy, China. Because of the need of gaining legitimacy in the new institutional context, Chinese firms have to adopt global CSR practices in order to remain competitive. Using the corporate governance framework, this study examines how board composition, ownership, and TMT composition influence corporate social performance. The propositions are tested using data gathered from 471 firms in China. By and large, empirical findings supported the hypothesized relationships.
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