The impact of domestic diversification and top management teams on the international diversification of Chinese firms

J. Lu; X. Liu; Igor Filatotchev; Mike Wright

doi:10.1016/j.ibusrev.2013.07.002

The impact of domestic diversification and top management teams on the international diversification of Chinese firms

J. Lu, X. Liu, Igor Filatotchev, Mike Wright

Strategy, Intl Mgt & Entrepreneurship

Research output: Contribution to journal › Article › peer-review

60 Citations (Scopus)

255 Downloads (Pure)

Abstract

Despite increasing research on outward foreign direct investment (OFDI) by firms from emerging economies, our understanding of the relationship between domestic operations and international diversification of these firms is still limited. Using a unique dataset of Chinese listed firms, we examine the impact of domestic diversification on their international diversification. We find that international diversification is positively affected by firms' domestic industrial and domestic regional diversification. We also find that top management team (TMT)'s previous international experience strengthens the impact of domestic diversification on firms' international diversification, whereas TMT's prior political connections weakens the impact of domestic diversification on international diversification.

Original language	Undefined/Unknown
Pages (from-to)	455 - 467
Journal	International Business Review
Volume	23
Issue number	2
Early online date	4 Sept 2013
DOIs	https://doi.org/10.1016/j.ibusrev.2013.07.002
Publication status	E-pub ahead of print - 4 Sept 2013

Keywords

Domestic diversification, Emerging economies, International diversification, Top management team

Access to Document

10.1016/j.ibusrev.2013.07.002

The impact of domestic_LU_Publishedonline4September2013_GREEN AAMAccepted author manuscript, 916 KB

Cite this

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title = "The impact of domestic diversification and top management teams on the international diversification of Chinese firms",

abstract = "Despite increasing research on outward foreign direct investment (OFDI) by firms from emerging economies, our understanding of the relationship between domestic operations and international diversification of these firms is still limited. Using a unique dataset of Chinese listed firms, we examine the impact of domestic diversification on their international diversification. We find that international diversification is positively affected by firms' domestic industrial and domestic regional diversification. We also find that top management team (TMT)'s previous international experience strengthens the impact of domestic diversification on firms' international diversification, whereas TMT's prior political connections weakens the impact of domestic diversification on international diversification.",

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AU - Liu, X.

AU - Filatotchev, Igor

AU - Wright, Mike

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AB - Despite increasing research on outward foreign direct investment (OFDI) by firms from emerging economies, our understanding of the relationship between domestic operations and international diversification of these firms is still limited. Using a unique dataset of Chinese listed firms, we examine the impact of domestic diversification on their international diversification. We find that international diversification is positively affected by firms' domestic industrial and domestic regional diversification. We also find that top management team (TMT)'s previous international experience strengthens the impact of domestic diversification on firms' international diversification, whereas TMT's prior political connections weakens the impact of domestic diversification on international diversification.

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