Advancing research on the determinants of Indian MNEs: the role of sub-national institutions
Abstract
Purpose
The purpose of this paper is to provide directions for advancing the research on determinants of outward foreign direct investment (FDI) from India.
Design/methodology/approach
The paper uses literature review as a method to identify a research gap in the literature on internationalization of Indian firms.
Findings
The synthesis of the theoretical debate and empirical studies conducted in context of EMNEs, with a particular focus on India and preliminary examination of data on cross-border acquisitions as well as institutions in India lead us to argue for the consideration of institutions at sub-national level (Indian states) in examining the determinants of outward FDI from India. The paper also proposes a conceptual framework relating to the mechanism through which institutions at the state level in India affect the propensity of firms to invest overseas.
Research limitations/implications
Since the propositions are not tested empirically, the paper does not provide conclusive results.
Originality/value
In addition to providing the synthesis of the theoretical debate and empirical studies, paper is, to the best of author’s knowledge, the first one to present a conceptual framework relating institutions at sub-national level with the outward foreign direct investment from India.
Keywords
Acknowledgements
The author would like to thank the editor of this special issue and anonymous reviewers for their insightful comments that helped improve this paper.
Citation
Nayyar, R. (2018), "Advancing research on the determinants of Indian MNEs: the role of sub-national institutions", International Journal of Emerging Markets, Vol. 13 No. 3, pp. 536-556. https://doi.org/10.1108/IJoEM-11-2016-0304
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited