Quotation Stoian, Carmen, Mohr, Alexander. 2016. Outward foreign direct investment from emerging economies: escaping home country regulative voids? International Business Review 25 (5), 1124-1135.


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Abstract

The internationalisation of multinationals from emerging economies raises the question of whether mainstream theory can explain this phenomenon. We combine the explanations of outward foreign direct investment (OFDI) provided by the institution-based view and the investment development path (IDP) and suggest that the combined use of these explanations contributes to the reconciliation of the mainstream and emerging views of internationalisation. We argue that although OFDI is undertaken by firms to overcome the competitive disadvantages resulting from home country regulative voids, escapist investment is facilitated if these firms possess certain competitive advantages that help them overcome the liability of foreignness when expanding abroad. We thus expect the impact of regulative voids on OFDI to vary with the level of local firms’ ownership advantages. Our analysis of OFDI flows from 29 emerging economies over 17 years (1995–2011) provides support for the direct effects of two types of regulative voids and for the three suggested moderating effects of firms’ competitive advantages.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal International Business Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title Outward foreign direct investment from emerging economies: escaping home country regulative voids?
Volume 25
Number 5
Year 2016
Page from 1124
Page to 1135
Reviewed? Y
DOI http://dx.doi.org/10.1016/j.ibusrev.2016.02.004

Associations

People
Mohr, Alexander (Details)
External
Stoian, Carmen (University of Kent, United Kingdom)
Organization
Institute for International Business (Details)
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