The role of reference groups in international investment decisions by firms from emerging economies

Jiatao Li; Fiona Kun Yao

doi:10.1016/j.intman.2010.03.005

The role of reference groups in international investment decisions by firms from emerging economies

Jiatao Li^*
, Fiona Kun Yao

^*Corresponding author for this work

Research output: Journal Publication › Article › peer-review

61 Citations (Scopus)

Abstract

Investments in China by firms from emerging economies were studied to determine how various reference groups affect their foreign market entry behavior. Imitation was shown to be an important factor, but the mechanism seems to vary depending on the institutional environments in the host and the home market. Firms from emerging economies seem to rely on copying the entry decisions of peers from their home country, especially in locations where the risk of government meddling is greatest. The example of firms from developed economies was found to be less influential.

Original language	English
Pages (from-to)	143-153
Number of pages	11
Journal	Journal of International Management
Volume	16
Issue number	2
DOIs	https://doi.org/10.1016/j.intman.2010.03.005
Publication status	Published - Jun 2010
Externally published	Yes

UN SDGs

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

SDG 17 Partnerships for the Goals

Free Keywords

China
Emerging economies
Reference groups

ASJC Scopus subject areas

Business and International Management
Finance
Strategy and Management

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10.1016/j.intman.2010.03.005

Cite this

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title = "The role of reference groups in international investment decisions by firms from emerging economies",

abstract = "Investments in China by firms from emerging economies were studied to determine how various reference groups affect their foreign market entry behavior. Imitation was shown to be an important factor, but the mechanism seems to vary depending on the institutional environments in the host and the home market. Firms from emerging economies seem to rely on copying the entry decisions of peers from their home country, especially in locations where the risk of government meddling is greatest. The example of firms from developed economies was found to be less influential.",

keywords = "China, Emerging economies, Reference groups",

author = "Jiatao Li and Yao, \{Fiona Kun\}",

note = "Funding Information: We would like to thank Peter Gammeltoft (the editor), an anonymous reviewer, Sea-jin Chang, and the participants of Copenhagen Conference on Emerging Multinationals for their helpful comments, and Bill Purves for editing assistance. We gratefully acknowledge support from Hong Kong's Research Grants Council through grant HKUST641609 .",

year = "2010",

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doi = "10.1016/j.intman.2010.03.005",

language = "English",

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AU - Li, Jiatao

AU - Yao, Fiona Kun

N1 - Funding Information: We would like to thank Peter Gammeltoft (the editor), an anonymous reviewer, Sea-jin Chang, and the participants of Copenhagen Conference on Emerging Multinationals for their helpful comments, and Bill Purves for editing assistance. We gratefully acknowledge support from Hong Kong's Research Grants Council through grant HKUST641609 .

PY - 2010/6

Y1 - 2010/6

N2 - Investments in China by firms from emerging economies were studied to determine how various reference groups affect their foreign market entry behavior. Imitation was shown to be an important factor, but the mechanism seems to vary depending on the institutional environments in the host and the home market. Firms from emerging economies seem to rely on copying the entry decisions of peers from their home country, especially in locations where the risk of government meddling is greatest. The example of firms from developed economies was found to be less influential.

AB - Investments in China by firms from emerging economies were studied to determine how various reference groups affect their foreign market entry behavior. Imitation was shown to be an important factor, but the mechanism seems to vary depending on the institutional environments in the host and the home market. Firms from emerging economies seem to rely on copying the entry decisions of peers from their home country, especially in locations where the risk of government meddling is greatest. The example of firms from developed economies was found to be less influential.

KW - China

KW - Emerging economies

KW - Reference groups

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DO - 10.1016/j.intman.2010.03.005

M3 - Article

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SN - 1075-4253

VL - 16

SP - 143

EP - 153

JO - Journal of International Management

JF - Journal of International Management

IS - 2

ER -

The role of reference groups in international investment decisions by firms from emerging economies

Abstract

UN SDGs

Free Keywords

ASJC Scopus subject areas

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