Cultural distance, political risk and location decisions of emerging-market multinationals: a comparison between Chinese and Indian firms

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Title: Cultural distance, political risk and location decisions of emerging-market multinationals: a comparison between Chinese and Indian firms
Authors: Quer, Diego | Claver-Cortés, Enrique | Rienda, Laura
Research Group/s: Dirección Estratégica, Conocimiento e Innovación en una Economía Global (DECI-GLOBAL)
Center, Department or Service: Universidad de Alicante. Departamento de Organización de Empresas
Keywords: Emerging-markets | Multinationals | Location decisions
Knowledge Area: Organización de Empresas
Issue Date: 12-Apr-2017
Publisher: Routledge
Citation: Journal of the Asia Pacific Economy. 2017, 22(4): 587-603. doi:10.1080/13547860.2017.1312065
Abstract: The international expansion of emerging-market multinational enterprises (MNEs) is becoming a research topic of increasing interest among international business scholars. One of the specific research questions arising is whether conventional theoretical arguments originated in studies on developed-country MNEs are still valid for explaining the international behavior of emerging-market MNEs. Drawing on the institutional theory, this paper argues that the influence of host country institutional factors on location decisions differs between Chinese and Indian MNEs. We hypothesize that the negative impact of both cultural distance and political risk on location decisions is lower for Chinese MNEs as compared to Indian MNEs. From a sample of 832 outward foreign direct investments (OFDIs) we obtain empirical support for these hypotheses.
URI: http://hdl.handle.net/10045/73530
ISSN: 1354-7860 (Print) | 1469-9648 (Online)
DOI: 10.1080/13547860.2017.1312065
Language: eng
Type: info:eu-repo/semantics/article
Rights: © 2017 Informa UK Limited, trading as Taylor & Francis Group
Peer Review: si
Publisher version: http://dx.doi.org/10.1080/13547860.2017.1312065
Appears in Collections:INV - DECI-GLOBAL - Artículos de Revistas

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