Seeking legitimacy: Chinese OFDI and domestic isomorphic pressures

Publication Type:
Journal Article
Asian Business and Management, 2017, 16 (1-2), pp. 1 - 24
Issue Date:
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© 2017 Macmillan Publishers Ltd. Drawing on institutional theory, we argue that the likelihood of a Chinese firm adopting an isomorphic strategy in outward foreign direct investment (OFDI) depends on the influence of external isomorphic pressures-specifically, domestic regional and domestic industrial isomorphic pressures-and the firm's internal legitimacy-seeking motivation. Quantitative analysis of a sample of 107 Chinese listed firms and their OFDI projects in the 2008-2012 period offers supportive evidence for our arguments. Our study offers further insights into Chinese MNEs by providing a better understanding of the impact of China's regional and industrial diversity on their OFDI.
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