Journal of International Business Studies

, Volume 49, Issue 3, pp 324–345 | Cite as

Home country supportiveness/unfavorableness and outward foreign direct investment from China

  • Ajai S Gaur
  • Xufei Ma
  • Zhujun Ding


What drives the outward foreign direct investments (OFDIs) by emerging market firms (EMFs)? Drawing on a strategy tripod framework, this article proposes a theoretical model to predict OFDI by EMFs from China. Specifically, we use institution- and industry-based views to examine two facets of home country environment, namely, the supportiveness from home government and unfavorableness from home industry, as important determinants of OFDI, and compare the relative strength of these effects. Further, we use the resource-based view to argue that the effect of the home country environment is contingent on the international experience portfolios of EMFs.


home country environment outward FDI emerging market firms international experience 


Qu’est-ce qui motive les investissements directs étrangers sortants (IDES) des entreprises issues des marchés émergents (EME) ? S’appuyant sur un cadre stratégique à trois pieds, cet article propose un modèle théorique pour prédire les IDES des EME de Chine. Plus précisément, nous utilisons des perspectives institutionnelles et industrielles pour étudier deux facettes de l’environnement du pays d’origine, à savoir le soutien du gouvernement domestique et le caractère défavorable de l’industrie domestique, comme déterminants importants des IDES ; et nous comparons le poids relatif de ces effets. En outre, nous utilisons l’approche fondée sur les ressources pour argumenter que l’effet de l’environnement du pays d’origine dépend des portefeuilles d’expériences internationales des EME.


¿Qué impulsa las inversiones extranjeras directas hacia afuera de las empresas de mercados emergentes? Basándonos en el marco del trípode de estrategia, este artículo propone un modelo teórico para predecir que impulsa la inversión extranjera directa hacia afuera de las empresas de China. Específicamente usamos puntos de vista basados en la institución y la industria para examinar dos facetas del entorno del país de origen, es decir, el apoyo del gobierno del país anfitrión y lo desfavorable de la industria doméstica, como determinantes importantes de la inversión extranjera directa hacia fuera y comparar las fortalezas relativas de estos efectos. Además, usamos la perspectiva basada en recursos para argumentar que los efectos del entorno del país de origen está supeditado a los portafolios de experiencia internacional de las inversiones extranjeras directas.


O que define os investimentos estrangeiros diretos externos (OFDIs) por empresas de mercados emergentes (EMFs)? Com base em um modelo de estratégia trípede, este artigo propõe um modelo teórico para prever o OFDI por EMFs da China. Especificamente, utilizamos visões baseadas em instituições e na indústria para examinar duas facetas do ambiente do país de origem, ou seja, o apoio do governo doméstico e a desfavorabilidade da indústria doméstica, como determinantes importantes do OFDI e comparamos a força relativa desses efeitos. Além disso, usamos a visão baseada em recursos para argumentar que o efeito do ambiente do país de origem depende do portfólio de experiências internacionais de EMFs.





We are grateful to the area editor Professor Mariko Sakakibara and the anonymous reviewers for their constructive comments and suggestions that have helped significantly improve the article. We also acknowledge support from the GRF Grants by HKSAR (Nos. 14501714, 14504715).


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© Academy of International Business 2018

Authors and Affiliations

  1. 1.Rutgers Business SchoolRutgers UniversityNewarkUSA
  2. 2.Department of Management, CUHK Business SchoolThe Chinese University of Hong KongShatinHong Kong SAR
  3. 3.Henley Business SchoolUniversity of ReadingReadingUK

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