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)

226 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

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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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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 - Lu, J.

AU - Liu, X.

AU - Filatotchev, Igor

AU - Wright, Mike

N1 - NOTICE: this is the author?s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, Volume 23, Issue 2, April 2014, Pages 455?467, http://dx.doi.org/10.1016/j.ibusrev.2013.07.002.

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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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