Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7413137 | Journal of World Business | 2018 | 12 Pages |
Abstract
This study investigates the outward foreign direct investment (OFDI) of state-owned enterprises (SOEs) through the lens of the mechanism of institutional compatibility. Drawing on institutional theory, we argue that institutional compatibility (thus legitimacy) at home and institutional incompatibility (thus lack of legitimacy) abroad reduce SOEs' OFDI activities. However, we also argue that home-country subnational factors (coercive, normative, and mimetic forces) provide a potentially offsetting effect. Using a sample of publicly listed Chinese firms, we find that coercive and mimetic forces generated from home subnational institutions reduce the negative effect of state ownership on OFDI activity.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Jing Li, Jun Xia, Daniel Shapiro, Zhouyu Lin,