Business groups' outward FDI: A managerial resources perspective

By D. Tan, K. Meyer. Journal of International Management, 2010

189 citations recorded by the source corpus.

Outward FDI strategies are driven by firms' resource endowments, which in turn are conditioned by their home environment. In emerging economies, thus, the pattern of outward FDI is shaped by local firms' idiosyncratic contexts and the resources that these firms developed to fit the contexts. This includes business groups, a dominant organizational form in many emerging economies, competing with context-bound resources. When they wish to transcend their home context, they need internationally valuable resources, especially managerial resources, which may be quite different than the resources that enable domestic growth. This paper thus explores what resources drive this international growth in the case of Taiwanese business groups. Starting from Penrosian Theory, we focus on managerial resources that are shared across the member firms of a group, and thus shape the profile of the group. We find that international work experience favors internationalization while international education does not. Moreover, domestic institutional resources distract from internationalization, presumably because they are not transferable into other institutional contexts, and thus favor other types of growth.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/887da3d3f0490619e4d3a71b626e449dbe478db5

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Citations in the corpus

Managing talent in emerging economy multinationals: integrating strategic management and human resource management (2018, background): “Tan and Meyer (2010) find that Taiwanese business groups whose board members share international work experience are focused more on international markets, whereas educational experience has a negative association.”
Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China (2011, methodology): “…at 1996 Hoskisson et al. (1993); Delios and Beamish (1999) Core industry growth The sales growth of the core industry of a business group Tan and Meyer (2010) Service oriented groups A dummy equal to one if the main industry of a business group belongs to a service industry Tan and Meyer (2010)”
Institutional open access at home and outward internationalization (2015, unknown): “Business group affiliation may help EE firms access more resources to facilitate growth (Tan & Meyer, 2010).”
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): “Tan and Meyer (2010) argued that the pattern of OFDI in emerging economies is a result of the contradictory conditions of local firms and the resources developed by these firms over a period of time.”
Home country institutions and the internationalization of state owned enterprises: A cross-country analysis (2016, background): “Third, the literature on the drivers of internalization has pointed to top management team characteristics, especially their international experience, as drivers of internationalization (Kirca et al., 2010; Sambharya, 1996; Tan & Meyer, 2010).”
Do we need different frameworks to explain infant MNEs from developing countries (2012, background): “Firms typically build their original resource endowments in their home country and this original resource endowment drives their initial international growth (Tan and Meyer, 2010).”
The global strategy of emerging multinationals from China (2012, unknown): “Barnard (2010) and Tan and Meyer (2010) document the lack of strong firm capabilities among MNEs from South Africa and Taiwan, respectively.”
Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness (2011, unknown): “However, the home based knowledge of emerging market MNEs also provides them with a set of (different) advantages (Cuervo-Cazurra and Genc, 2011; Tan and Meyer, 2010).”