Back to roots: TMTs’ country-specific experience, FDI preference, and political center favoritism

Zhou, Y; Liu, P; Teng, M; Wang, Z

Back to roots: TMTs’ country-specific experience, FDI preference, and political center favoritism

Zhou, Y Liu, P Teng, M Wang, Z

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Publisher:: ELSEVIER
Publication Type:: Journal Article
Citation:: International Business Review, 2023, 32, (4)
Issue Date:: 2023-08-01

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Field	Value	Language
dc.contributor.author	Zhou, Y
dc.contributor.author	Liu, P
dc.contributor.author	Teng, M
dc.contributor.author	Wang, Z
dc.date.accessioned	2024-04-18T02:30:29Z
dc.date.available	2024-04-18T02:30:29Z
dc.date.issued	2023-08-01
dc.identifier.citation	International Business Review, 2023, 32, (4)
dc.identifier.issn	0969-5931
dc.identifier.issn	1873-6149
dc.identifier.uri	http://hdl.handle.net/10453/178027
dc.description.abstract	This paper investigates how the origin experience and work experience of top management teams (TMTs) affect foreign direct investment (FDI) decisions of multinational enterprises (MNEs), drawing on learning theories and social capital view. Using data from Standard and Poor's firms operating in China during 2014–2016, we find that TMTs’ country-specific origin experience and work experience have a positive impact on the extent of FDI in the focal country, while we find that the former has a greater impact. Consistent with the consideration of being deeply anchored in the specific country, we find that TMTs with origin experience, relative to work experience, are more likely to choose FDI locations in the political center. We further find that the effect of origin experience on the extent of FDI and the preference for political centers will be more pronounced for MNEs with low levels of profitability. This study contributes to the literature on international business and provides practical implications for international expansion.
dc.language	English
dc.publisher	ELSEVIER
dc.relation.ispartof	International Business Review
dc.relation.isbasedon	10.1016/j.ibusrev.2023.102103
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1503 Business and Management, 1505 Marketing
dc.subject.classification	Business & Management
dc.subject.classification	3505 Human resources and industrial relations
dc.subject.classification	3507 Strategy, management and organisational behaviour
dc.title	Back to roots: TMTs’ country-specific experience, FDI preference, and political center favoritism
dc.type	Journal Article
utslib.citation.volume	32
utslib.for	1503 Business and Management
utslib.for	1505 Marketing
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
utslib.copyright.status	closed_access	*
dc.date.updated	2024-04-18T02:30:27Z
pubs.issue	4
pubs.publication-status	Published
pubs.volume	32
utslib.citation.issue	4

Abstract:

This paper investigates how the origin experience and work experience of top management teams (TMTs) affect foreign direct investment (FDI) decisions of multinational enterprises (MNEs), drawing on learning theories and social capital view. Using data from Standard and Poor's firms operating in China during 2014–2016, we find that TMTs’ country-specific origin experience and work experience have a positive impact on the extent of FDI in the focal country, while we find that the former has a greater impact. Consistent with the consideration of being deeply anchored in the specific country, we find that TMTs with origin experience, relative to work experience, are more likely to choose FDI locations in the political center. We further find that the effect of origin experience on the extent of FDI and the preference for political centers will be more pronounced for MNEs with low levels of profitability. This study contributes to the literature on international business and provides practical implications for international expansion.

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http://hdl.handle.net/10453/178027