TY  - JOUR
AB  - Purpose Most previous research assumes that the outward foreign direct investment (OFDI) decisions of multinational corporations (MNCs) are made independently of the actions or characteristics of their peers. Therefore, the important influence of peer effects on the OFDI strategy is often neglected. The purpose of this paper is to identify two broad categories of peer effects, i.e. learning-based and profit-driven imitations and examine the important influence of peer effects on MNCs’ internationalization strategy.Design/methodology/approach Using Chinese manufacturing firms as the empirical sample, the authors employ an econometric method (logit regression) to test the relationship between peer effects and an internationalization strategy.Findings Learning-based and profit-driven imitations are positively associated with a focal MNC’s OFDI decision. Policy uncertainty also positively moderates the relationship between peer effects and the OFDI strategy. Moreover, both peer effects are amplified when a firm is equipped with a dense export network.Originality/value The study offers researchers and practitioners a detailed view of interorganizational imitation behavior in terms of an internationalization strategy.
VL  - 58
IS  - 4
SN  - 0025-1747
DO  - 10.1108/MD-11-2018-1194
UR  - https://doi.org/10.1108/MD-11-2018-1194
AU  - Wang Ruicheng
AU  - Zhou William Chongyang
PY  - 2019
Y1  - 2019/01/01
TI  - Peer effects in outward foreign direct investment: evidence from China
T2  - Management Decision
PB  - Emerald Publishing Limited
SP  - 705
EP  - 724
Y2  - 2024/04/23
ER  -