Speed of China’s OFDIs to the Belt and Road Initiative destinations: State equity, industry competition, and the moderating effects of the policy
Tóm tắt
Organizational timely investments determine the success of the Belt and Road Initiative (BRI), yet few studies have explored the antecedents of those speed decisions. Based on a dataset of Chinese-listed firms over 11 years, we address this research paucity by incorporating the push and pull antecedents of OFDIs. The study revealed that industry competition significantly facilitates organizational BRI investment speed after the launch of the initiative, but such facilitative effects become weaker for firms located in the key BRI-participating provinces. Intriguingly, firms with greater state equity are slow after the launch of the BRI, and their slow gestures become more severe in those key provinces. The additional tests implicated that this result occurs because of inadequate positioning of those inland provinces. Overall, the study clarified the nature of the BRI by exploring the speed dimension. The findings also challenged the conventional wisdom of treating firms with greater state equity as obedient extensions of the government by unmasking their conservative attitudes toward the BRI, highlighting some fallacies of contemporary BRI policy. Third, the temporal and geographic aspects should be applied simultaneously to examine the policy effects of the BRI.
Tài liệu tham khảo
Bai, X., Wang, Q., Sheng, S., & Li, J. J. 2021. Cross-level interpersonal ties and IJV innovation: Evidence from China. Journal of Business Research, 134: 618–630.
Balakrishnan, S., & Fox, I. 1993. Asset specificity, firm heterogeneity and capital structure. Strategic Management Journal, 14: 3–16.
Belt and Road Portal. 2017. Combing the blueprint of the Belt and Road Initiative [in Chinese]. Retrieved May 7, 2020, from https://www.yidaiyilu.gov.cn/ztindex.htm.
Belt and Road Portal. 2020. List of countries that have signed Belt and Road Initiative cooperation document with China [in Chinese]. Retrieved May 8, 2020, from https://www.yidaiyilu.gov.cn/gbjg/gbgk/77073.htm.
Buckley, P. J. 2020. China’s Belt and Road Initiative and the COVID-19 crisis. Journal of International Business Policy, 3(3): 311–314.
Buckley, P. J., Clegg, J., Cross, A. R., Liu, X., Voss, H., & Zheng, P. 2007. The determinants of Chinese outward foreign direct investment. Journal of International Business Studies, 38(4): 499–518.
Chang, A., Torres de Oliveira, R., Chung, H.M., & Zheng, N. forthcoming. Subnational response differences on the Belt and Road Initiative policy and firm internationalization: A longitudinal and multi-level approach. Journal of International Business Policy.
Chang, S. J., & Rhee, J. H. 2011. Rapid FDI expansion and firm performance. Journal of International Business Studies, 42(8): 979–994.
Du, J., & Zhang, Y. 2018. Does One Belt One Road Initiative promote Chinese overseas direct investment? China Economic Review, 47: 189–205.
Gaba, V., Pan, Y., & Ungson, G. R. 2002. Timing of entry in international market: An empirical study of US Fortune 500 firms in China. Journal of International Business Studies, 33(1): 39–55.
Gao, G. Y., Murray, J. Y., Kotabe, M., & Lu, J. 2010. A “strategy tripod” perspective on export behaviors: Evidence from domestic and foreign firms based in an emerging economy. Journal of International Business Studies, 41(3): 377–396.
Gaur, A. S., Ma, X., & Ding, Z. 2018. Home country supportiveness/unfavorableness and outward foreign direct investment from China. Journal of International Business Studies, 49(3): 324–345.
Greve, H. R., & Zhang, M. C. 2017. Institutional logics and power sources: Merger and acquisition decisions. Academy of Management Journal, 60(2): 671–694.
Gurin, N., How, P.D.S., Jackson, S.A., & Yu, P.N. 2015. How significant are the security and political risks and threats to China’s grand westward strategy in Central Asia? University of Hong Kong Libraries.
Henning, S. L., Lewis, B. L., & Shaw, W. H. 2000. Valuation of the components of purchased goodwill. Journal of Accounting Research, 38(2): 375–386.
Johanson, J., & Vahlne, J. E. 2009. The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9): 1411–1431.
Krishnan, R. A., Joshi, S., & Krishnan, H. 2004. The influence of mergers on firms’ product-mix strategies. Strategic Management Journal, 25: 587–611.
Kumar, V., Singh, D., Purkayastha, A., Popli, M., & Gaur, A. 2020. Springboard internationalization by emerging market firms: Speed of first cross-border acquisition. Journal of International Business Studies, 51(2): 172–193.
Lebedev, S., Peng, M. W., Xie, E., & Stevens, C. E. 2015. Mergers and acquisitions in and out of emerging economies. Journal of World Business, 50(4): 651–662.
Li, J., Li, P., & Wang, B. 2019a. The liability of opaqueness: State ownership and the likelihood of deal completion in international acquisitions by Chinese firms. Strategic Management Journal, 40(2): 303–327.
Li, J., Liu, B., & Qian, G. 2019b. The Belt and Road Initiative, cultural friction and ethnicity: Their effects on the export performance of SMEs in China. Journal of World Business, 54(4): 350–359.
Li, J., Qian, G., Zhou, K. Z., Lu, J., & Liu, B. 2021a. Belt and Road Initiative, globalization and institutional changes: Implications for firms in Asia. Asia Pacific Journal of Management. https://doi.org/10.1007/s10490-021-09770-0.
Li, J., Van Assche, A., Li, L., & Qian, G. 2021b. Foreign direct investment along the Belt and Road: A political economy perspective. Journal of International Business Studies. https://doi.org/10.1057/s41267-021-00435-0.
Liu, B., & Wang, Q. 2020. Can certification help incumbent firms? Asia Pacific Journal of Management, 37: 1061–1083.
Luo, Y., & Wang, S. L. 2012. Foreign direct investment strategies by developing: Country multinationals: A diagnostic model for home country effects. Global Strategy Journal, 2(3): 244–261.
Peng, M. W., Wang, D. Y., & Jiang, Y. 2008. An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies, 39(5): 920–936.
Porter, M. E. 1980. Competitive strategy: techniques for analyzing industries and competitors. New York: The Free Press: 1980.
Qian, G., Li, L., & Rugman, A. M. 2013. Liability of country foreignness and liability of regional foreignness: Their effects on geographic diversification and firm performance. Journal of International Business Studies, 44(6): 635–647.
Qian, G., Liu, B., & Wang, Q. 2018. Government subsidies, state ownership, regulatory infrastructure, and the import of strategic resources: Evidence from China. Multinational Business Review, 26(4): 319–336.
Sjöholm, F. 1999. Exports, imports and productivity: Results from Indonesian establishment data. World Development, 27(4): 705–715.
Tang, R. W. 2019. FDI expansion speed of state-owned enterprises and the moderating role of market capitalism: Evidence from China. International Business Review, 28(6): 1–13.
Tihanyi, L., Aguilera, R. V., Heugens, P., van Essen, M., Sauerwald, S., Duran, P., & Turturea, R. 2019. State ownership and political connections. Journal of Management, 45(6): 2293–2321.
Van Assche, A. 2018. From the editor: Steering a policy turn in international business – opportunities and challenges. Journal of International Business Policy, 1: 117–127.
Van Assche, A., & Lundan, S. 2020. From the editor: COVID-19 and international business policy. Journal of International Business Policy, 3: 273–279.
Vermeulen, F., & Barkema, H. 2002. Pace, rhythm, and scope: Process dependence in building a profitable multinational corporation. Strategic Management Journal, 23(7): 637–653.
Wang, P., Jiang, X., & Dong, M. C. 2021. Alliance experience and performance outcomes: A meta-analysis. Strategic Organization. https://doi.org/10.1177/1476127020982875.
Wang, P., Ma, Y., & Hu, Z. 2018. Unraveling the effect of alliance experience on alliance formation and alliance governance structure: A meta-analytic approach. Australian Journal of Management, 43(4): 653–671.
Wang, Q., & Liu, B. 2021. State equity and outward FDI under the theme of Belt and Road Initiative. Asia Pacific Journal of Management. https://doi.org/10.1007/s10490-020-09716-y.
Wang, Q., Xie, X., & Wang, M. 2015. Environmental regulation and firm location choice in China. China Economic Journal, 8(3): 215–234.
World Bank. 2012. China Trade Summary 2012 Data. Retrieved May 12, 2020, from https://wits.worldbank.org/CountryProfile/en/Country/CHN/Year/2012/Summary.
Yang, J. Y., Lu, J., & Jiang, R. 2017. Too slow or too fast? Speed of FDI expansions, industry globalization, and firm performance. Long Range Planning, 50: 74–92.
Zhou, K. Z., Gao, G. Y., & Zhao, H. 2017. State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2): 375–404.