What drives the outward foreign direct investments (OFDIs) by emerging market firms (EMFs)? Drawing on a strategy tripod framework, this article proposes a theoretical model to predict OFDI by EMFs from China. Specifically, we use institution-and industry-based views to examine two facets of home country environment, namely the supportiveness from home government and unfavorableness from home industry, as important determinants of OFDI, and compare the relative strength of these effects. Further, we use resource-based view to argue that the effect of the home country environment is contingent on the international experience portfolios of EMFs.
This article offers an overview of entrepreneurship in China to complement this special issue of International Small Business Journal: 'Exploring Entrepreneurial Activity and Small Business Issues in the Chinese Economy'. A broad review of entrepreneurship research is provided and linked to the context of research in China with several principal topics summarised. These include an examination of recent research on entrepreneurial firms in China, the attributes of Chinese entrepreneurs and the challenges they face. Finally, future research avenues are suggested.
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This study advances the institution-based view of strategy by integrating it with firmspecific capability considerations. In particular, we investigate the integrative influence of subnational-level home country institutional environments and firm-level political capital, as an important way to seek resources, on emerging economy entrepreneurial firms' internationalization. With data from Chinese entrepreneurial firms, we find that the development of subnational institutional environments in the home country is related to firms' degree of internationalization. Furthermore, while political capital with low-level governments enhances the effect of subnational institutions on internationalization, political capital with high levels of government has no such moderation effect. Theoretical and empirical contributions and implications are discussed.
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