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

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–cap...

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Bibliographic Details
Published in:Journal of world business : JWB 2014-10, Vol.49 (4), p.488-501
Main Authors: Cui, Lin, Meyer, Klaus E., Hu, Helen Wei
Format: Article
Language:English
Subjects:
China
Competition
Competitive catch-up
Competitive dynamics
Discriminant analysis
Emerging markets
Enterprises
Foreign direct investment
Foreign investment
Governance
Leaders
MNEs from emerging economies
Planning methods
Strategic asset seeking
Strategic planning
Studies
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Summary: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.
ISSN:1090-9516
1878-5573
DOI:10.1016/j.jwb.2013.12.003