What drives firms' intent to seek strategic assets by foreign direct investment? A study of emerging economy firms

By Lin Cui, K. Meyer, H. Hu. 2014

320 citations recorded by the source corpus.

What drives firms, particularly those from emerging economies, to engage in competitive catch-up with world leaders? We study the first step leading to catch-up, namely the managerial intent to acquire strategic assets that help closing the gap. Theoretically grounded in the awareness–motivation–capability (AMC) framework of competitive dynamics, we identify key factors contributing to firms’ strategic intent to catch-up by acquiring strategic assets abroad. Using a sample of 154 Chinese firms, we find that firms’ strategic assets seeking intent of foreign direct investment is influenced by their exposure to foreign competition, their governance structure, and relevant financial and managerial capabilities.

Subfields: Accounting, Information Systems, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/271528e9d01a2b98fe2d9da6eae006ce38d3e31b

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In Accounting

In Information Systems

In Strategy and Management

Citations in the corpus

A review of research on outward foreign direct investment from emerging countries, including China: what do we know, how do we know and where should we be heading? (2018, background): “There have been several efforts to examine the strategic reasons for OFDI from Chinese MNEs and to build theoretical models (Cui, Meyer, and Hu 2014; Huang and Wang 2011; Hong and Sun 2006; Kevin 1999; Liang, Lu, and Wang 2012; Lu, Liu, and Wang 2011; Meyer et al. 2014; Tung 2007; Zhan 1995; Wang…”
In search of strategic assets through cross-border merger and acquisitions: Evidence from Chinese multinational enterprises in developed economies (2016, background): “…to the institutional characteristics of China1 (Deng, 2009; Lu, Liu & Wang, 2011), industry R&D intensity, firms’ technology-based competitive advantages (Lu et al., 2011), firms’ exposure to foreign competition, governance structure and financial and managerial capabilities (Cui et al., 2014).”
What is “strategic asset seeking FDI”? (2015, background): “…definition has also been used in studies co-authored by Dunning himself; Dunning and Narula (1995) refer to the competitive advantage of the investing firm, other authors refer to “advancing global competitiveness” as distinct from local competitiveness (Dunning and Lundan, 2008; Cui et al., 2014).”