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

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Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises. / Luo, Huiying ; Liu, Xiaohui; Wu, Aiqi; Zhong, Xiaotong .

In: Asia Pacific Journal of Management, 21.12.2019.

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@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",

}

RIS

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

JO - Asia Pacific Journal of Management

JF - Asia Pacific Journal of Management

SN - 0217-4561

ER -