Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises

Huiying  Luo; Xiaohui Liu; Aiqi Wu; Xiaotong  Zhong

doi:10.1007/s10490-019-09697-7

Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises

Huiying Luo
, Xiaohui Liu
, Aiqi Wu
, Xiaotong Zhong

Strategy and International Business

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

557 Downloads (Pure)

Abstract

This study explores the impact of local protectionism on outward foreign direct investment (OFDI) and how firms respond to local protectionism in a transition economy. We find that local protectionism exerts a negative effect on the OFDI decisions of Chinese privately-owned enterprises (POEs). However, this negative impact is weakened by POEs’ corporate philanthropy strategy, whereas corporate political activity reinforces such an impact. This research extends the lens of institutional escapism by highlighting local protectionism as a barrier to OFDI and provides new insights into how firms respond to the subnational environment by adopting various nonmarket strategies.

Original language	English
Number of pages	26
Journal	Asia Pacific Journal of Management
Early online date	21 Dec 2019
DOIs	https://doi.org/10.1007/s10490-019-09697-7
Publication status	E-pub ahead of print - 21 Dec 2019

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Keywords

OFDI decisions
Subnational governments
Local protectionism
Corporate philanthropy
Corporate political activity
Privately-owned enterprises

Access to Document

10.1007/s10490-019-09697-7Licence: None: All rights reserved

Luo_et_al_Is_it_possible_to_escape?_Local_protectionism_and_outward_foreign_direct_investment_Asia_Pacific_Journal_of_Management_2019
This is a post-peer-review, pre-copyedit version of an article published in Asia Pacific Journal of Management. The final authenticated version is available online at: http://dx.doi.org/10.1007/s10490-019-09697-7
Accepted author manuscript, 0.99 MBLicence: Other (please specify with Rights Statement)

https://link.springer.com/article/10.1007%2Fs10490-019-09697-7Licence: None: All rights reserved

Cite this

@article{66eef4619e7b4715ad06f735a22528ae,

title = "Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises",

abstract = "This study explores the impact of local protectionism on outward foreign direct investment (OFDI) and how firms respond to local protectionism in a transition economy. We find that local protectionism exerts a negative effect on the OFDI decisions of Chinese privately-owned enterprises (POEs). However, this negative impact is weakened by POEs{\textquoteright} corporate philanthropy strategy, whereas corporate political activity reinforces such an impact. This research extends the lens of institutional escapism by highlighting local protectionism as a barrier to OFDI and provides new insights into how firms respond to the subnational environment by adopting various nonmarket strategies. ",

keywords = "OFDI decisions, Subnational governments, Local protectionism, Corporate philanthropy, Corporate political activity, Privately-owned enterprises",

author = "Huiying Luo and Xiaohui Liu and Aiqi Wu and Xiaotong Zhong",

year = "2019",

month = dec,

day = "21",

doi = "10.1007/s10490-019-09697-7",

language = "English",

journal = "Asia Pacific Journal of Management",

issn = "0217-4561",

publisher = "Springer",

}

TY - JOUR

T1 - Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises

AU - Luo, Huiying

AU - Liu, Xiaohui

AU - Wu, Aiqi

AU - Zhong, Xiaotong

PY - 2019/12/21

Y1 - 2019/12/21

N2 - This study explores the impact of local protectionism on outward foreign direct investment (OFDI) and how firms respond to local protectionism in a transition economy. We find that local protectionism exerts a negative effect on the OFDI decisions of Chinese privately-owned enterprises (POEs). However, this negative impact is weakened by POEs’ corporate philanthropy strategy, whereas corporate political activity reinforces such an impact. This research extends the lens of institutional escapism by highlighting local protectionism as a barrier to OFDI and provides new insights into how firms respond to the subnational environment by adopting various nonmarket strategies.

AB - This study explores the impact of local protectionism on outward foreign direct investment (OFDI) and how firms respond to local protectionism in a transition economy. We find that local protectionism exerts a negative effect on the OFDI decisions of Chinese privately-owned enterprises (POEs). However, this negative impact is weakened by POEs’ corporate philanthropy strategy, whereas corporate political activity reinforces such an impact. This research extends the lens of institutional escapism by highlighting local protectionism as a barrier to OFDI and provides new insights into how firms respond to the subnational environment by adopting various nonmarket strategies.

KW - OFDI decisions

KW - Subnational governments

KW - Local protectionism

KW - Corporate philanthropy

KW - Corporate political activity

KW - Privately-owned enterprises

U2 - 10.1007/s10490-019-09697-7

DO - 10.1007/s10490-019-09697-7

M3 - Article

SN - 0217-4561

JO - Asia Pacific Journal of Management

JF - Asia Pacific Journal of Management

ER -

Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises

Abstract

UN SDGs

Keywords

Access to Document

Fingerprint

Cite this