Skip to main content

Research Repository

Advanced Search

Is the Strategic Asset Seeking Investment Proclivity of Chinese MNEs Different to that of Developed Market MNEs? A Comparative Analysis of Location Choice and Orientation

Sutheland, D.; Anderson, J.; Hertenstein, P.

Is the Strategic Asset Seeking Investment Proclivity of Chinese MNEs Different to that of Developed Market MNEs? A Comparative Analysis of Location Choice and Orientation Thumbnail


Authors

D. Sutheland

J. Anderson

P. Hertenstein



Contributors

Abstract

Do emerging market MNEs acquire strategic assets in psychically distant developed markets to augment the firm-specific advantages they lack? This question is central to current conceptual discussion of their FDI strategies. To date, however, empirical testing has focused on emerging market MNE FDI location choices in isolation to indirectly infer facts about strategic asset seeking orientation. There are two weaknesses with this approach. First, comparative analysis with developed market MNEs is limited. Second, the focus on geographical location choices does not account for important direct, firm-level evidence on the strategic assets found in foreign subsidiaries. To address these gaps, we first undertake a comparative location choice study of Chinese MNE and developed market MNE FDI in the US. Second, we test corresponding firm-level US subsidiary data using logit modelling to explore whether there are differences between Chinese and developed market MNEs. Our results indicate similarities, rather than differences, in the strategic asset seeking behavior of Chinese and developed market MNEs. This calls into question whether theoretical extension is necessary to explain the behavior of emerging market MNEs as well as the value of indirect, location choice approaches to the analysis of strategic asset seeking FDI.

Citation

Sutheland, D., Anderson, J., & Hertenstein, P. (2018). Is the Strategic Asset Seeking Investment Proclivity of Chinese MNEs Different to that of Developed Market MNEs? A Comparative Analysis of Location Choice and Orientation. Management International Review, 58(6), 911-933. https://doi.org/10.1007/s11575-017-0339-6

Journal Article Type Article
Acceptance Date Nov 15, 2017
Online Publication Date Nov 29, 2017
Publication Date Dec 1, 2018
Deposit Date Nov 10, 2017
Publicly Available Date Mar 28, 2024
Journal Management International Review
Print ISSN 0938-8249
Electronic ISSN 1861-8901
Publisher Springer
Peer Reviewed Peer Reviewed
Volume 58
Issue 6
Pages 911-933
DOI https://doi.org/10.1007/s11575-017-0339-6
Public URL https://durham-repository.worktribe.com/output/1344314

Files





You might also like



Downloadable Citations