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Article
Publication date: 25 July 2023

Tong Tong, Tarlok Singh, Bin Li and Lewis Liu

This paper aims to investigate the primary motivations for China’s outward foreign direct investment (ODI) decisions.

Abstract

Purpose

This paper aims to investigate the primary motivations for China’s outward foreign direct investment (ODI) decisions.

Design/methodology/approach

Using a panel data sample covering the period 2003–2012 and a comprehensive set of 176 host countries.

Findings

This study finds that market size, trade variables and natural resource variables are strongly related to the Chinese ODI stocks. This indicates that Chinese ODI decisions are driven by both market- and resource-seeking motives. The subperiod sample test results lend even stronger support to the market-seeking motive for ODI.

Originality/value

These results seem to emerge from the policy changes that were undertaken during the sample period. Consistent with subgroup tests, this study finds that the main purposes of China’s ODI in the top 100 countries are natural resource explorations and production line replacements.

Details

Pacific Accounting Review, vol. 35 no. 4
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 21 March 2022

Qingyan Jiang, Cuihong Yang, Jie Wu and Yan Xia

Known as the major capital providers in Belt and Road countries and the largest carbon emitter in the world, what role China's outward direct investment (ODI) plays in carbon…

Abstract

Purpose

Known as the major capital providers in Belt and Road countries and the largest carbon emitter in the world, what role China's outward direct investment (ODI) plays in carbon neutralization has become a matter of concern. This study aims to measure the impact of China's ODI on the carbon emissions of Belt and Road countries.

Design/methodology/approach

Based on an econometric model and an inter-regional input–output model, a new model measuring the carbon emission effects of ODI is developed.

Findings

The empirical results show that (1) in general, China's ODI generates an emission-reduction effect in Belt and Road countries; (2) The relationship between the emission-reduction effect and income level of host countries shows an approximate inverted U-shaped trend; and (3) China's ODI generates stronger emission-reduction effects on capital-intensive industries.

Originality/value

This study quantitatively measures the scale of carbon emission-increase and reduction effect, which is relatively lacking in previous studies. This study explores the heterogeneity from the perspectives of regions, countries and industries. The authors have compiled an inter-regional input–output table for the Belt and Road countries for 2014 to provide a broad basis for the study of related issues.

Details

International Journal of Emerging Markets, vol. 18 no. 11
Type: Research Article
ISSN: 1746-8809

Keywords

Content available
Article
Publication date: 25 October 2023

Fang Hu, Lin Liao, Weiqiang Tan and Daifei (Troy) Yao

323

Abstract

Details

Pacific Accounting Review, vol. 35 no. 4
Type: Research Article
ISSN: 0114-0582

Article
Publication date: 7 August 2023

Xiyue Zheng, Fusheng Wang, Shiyu Liu, Han Wang and Dongchao Zhang

This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies…

Abstract

Purpose

This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies during the period spanning 2010–2019. The data pertaining to these companies was used as a research sample to analyze the effects of OFDI on radical innovation performance.

Design/methodology/approach

Hierarchical regression analysis was used to test the proposed models, using survey data collected from 442 high-tech companies in China.

Findings

The findings of this study indicate a curvilinear (i.e. U-shaped) relationship between the breadth/depth of OFDI and radical innovation performance. Additional analysis reveals that OFDI plays a role in facilitating innovation breakthroughs by enhancing the internal dynamic capabilities of companies. Moreover, it is observed that a well-established institutional environment in the host country of investment can positively moderate the relationship between OFDI breadth/depth and radical innovation performance.

Originality/value

This study proffers a significant contribution to the understanding of the crucial role played by OFDI from emerging economy companies in enhancing radical innovation performance. Moreover, it offers theoretical guidance for multinational companies aiming to foster innovation breakthroughs.

Details

Chinese Management Studies, vol. 18 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 9 November 2021

Derrick Anquanah Cudjoe, He Yumei and Hanhui Hu

This study examines the impact of China’s trade, aid and foreign direct investment (FDI) on the economic growth of Africa.

Abstract

Purpose

This study examines the impact of China’s trade, aid and foreign direct investment (FDI) on the economic growth of Africa.

Design/methodology/approach

Our study covered 41 countries in Africa, cutting across the western, eastern, central, southern and northern sub-regions. The study adopted the dynamic system generalized method of moments (SGMM), feasible generalized least squares (FGLS) and Dumitrescu–Hurlin Panel Granger causality techniques for estimations.

Findings

Overall, FDI, trade and aid from China have a nonlinear relationship with Africa’s economic growth. The findings reveal a key novelty in that the marginal effect on real per capita GDP increases when China’s FDI interacts with the manufacturing sector in Africa. These findings are robust to long-run estimations.

Research limitations/implications

Given that we have examined the short-and long-run symbiotic effects of China’s FDI and Africa’s manufacturing sector and China’s aid and Africa’s manufacturing sector, more studies are warranted in this area, particularly to produce further empirical evidence of these findings. Moreover, future work could focus on investigating the country-specific effects of China’s trade, China’s FDI and China’s aid on real GDP per capita in each African country as our results reflect within-country elasticities.

Originality/value

This study provides new evidence on the impact of China’s trade, aid and FDI on the growth of African economies. To the best of our knowledge, this is the first study to empirically explore the long-run effects of China’s trade, FDI and aid on economic growth in African countries. This study also tests the claim of the displacement of Africa’s manufacturing industry by its Chinese counterparts.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 17 May 2022

Yang Yang, Jia Xu, Jonathan P. Allen and Xiaohua Yang

This study examines the impact of formal and informal institutional distances on the foreign ownership strategies of emerging market firms (EMFs).

Abstract

Purpose

This study examines the impact of formal and informal institutional distances on the foreign ownership strategies of emerging market firms (EMFs).

Design/methodology/approach

This is an empirical study relying on two sets of data collected over two time periods, 2006–2008 and 2017–2019, for publicly-listed Chinese companies.

Findings

Greater formal institutional distances in the host and home countries make EMFs less likely to use joint ventures (JVs), while greater informal distances make EMFs more likely to use the JVs. When both formal and informal institutional distances are high, the use of JVs is more likely. These results are affected by the goal of the foreign direct investment (FDI) project, with strategic asset-seeking (SAS) FDI projects favoring the use of wholly owned subsidiaries (WOSs).

Research limitations/implications

This study relies on cross-sectional data from publicly-listed Chinese companies, which may limit the generalizability of the findings.

Practical implications

EMFs investing in advanced countries should carefully assess the tradeoffs between transactional cost efficiency and legitimacy in making their foreign ownership decisions. If the goal is to access strategic assets, EMFs should consider WOSs to ensure the transfer of strategic assets and create value for the parent company.

Originality/value

The findings show that formal and informal distances between institutions have different impacts on foreign ownership strategies, providing empirical evidence for the need to balance conflicting cost-efficiency and legitimacy considerations when businesses make such strategic decisions. The authors show how this balance depends on the goal of the FDI project.

Details

International Journal of Emerging Markets, vol. 18 no. 12
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 8 August 2022

Lai Wan Hooi

The purpose of this paper is to explore the success factors needed for the development of global human resources from both the organisation’s and expatriates’ perspectives in…

Abstract

Purpose

The purpose of this paper is to explore the success factors needed for the development of global human resources from both the organisation’s and expatriates’ perspectives in emerging eastern economies. Specifically, this study focuses on pre-expatriation preparation, during-expatriation adjustment and post-expatriation repatriation.

Design/methodology/approach

In total, 23 Taiwanese personnel contributed to this case study. Data collected from the focus group discussion and open-ended asynchronous email interviews was analysed using the content analysis approach.

Findings

The results of this study revealed four main selection criteria for the selection process and five desired preparation methods from the organisation and the expatriates’ perspectives.

Originality/value

This study makes two main contributions to cross-cultural related global human resources research. Firstly, this study deepens understanding on the pathway to developing culturally intelligent global human resources for successful mission accomplishment from both the organisation and expatriates’ perspectives based on a three-phase expatriation process in emerging eastern economies. Secondly, this study provides an insight into the best practices that HR practitioners can use in developing global human resources for expatriation.

Details

International Journal of Organizational Analysis, vol. 31 no. 7
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 5 April 2023

Sof Thrane, Lars Balslev and Ivar Friis

The purpose of this paper is to investigate how fairness evaluations are constructed in a B2B context.

Abstract

Purpose

The purpose of this paper is to investigate how fairness evaluations are constructed in a B2B context.

Design/methodology/approach

This paper conducts a field study of Air Greenland and its internal and external customers based on strong structuration theory (Stones, 2005). The authors employ context and conduct analysis to analyze how fairness evaluations emerge across four levels of structuration.

Findings

The paper finds that fairness evaluations emerge as a result of the interaction between external institutional pressures, agents' internal structures, and situated reflection and outcomes. The construction of fairness evaluations was embedded in contradictory institutional structures, where groups of actors constructed different evaluations of fair profits, procedures and prices. Actors furthermore worked on changing position-practice relations which shifted relations, external structures and affected outcomes and fairness evaluations.

Originality/value

This paper offers a conceptualization of embedded agency as emerging across the four levels of structuration. This contributes to debates in strong structuration theory through conceptualizing and analyzing how actors may be both be constrained and oriented by structures while reflexively adapting structures across the four levels of structuration. The paper extends extant pricing fairness research by illustrating how actors' construction of fairness flexibly develop fairness evaluations while responding to legitimacy and societal demands, including the needs of particular customer groups.

Details

Accounting, Auditing & Accountability Journal, vol. 37 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 19 April 2023

Wilson Wai Kwan Yeh, Gang Hao and Muammer Ozer

Although real estate investment decisions are among the most important managerial decisions, such decisions are usually made in an ad hoc fashion in Southeast Asia. The purpose of…

Abstract

Purpose

Although real estate investment decisions are among the most important managerial decisions, such decisions are usually made in an ad hoc fashion in Southeast Asia. The purpose of this study is to present a two-tier multi-criteria decision-making model for real estate investment decisions across three rapidly growing but significantly understudied Southeast Asian countries: Cambodia, Myanmar and Vietnam.

Design/methodology/approach

Using three data sources (secondary data, two surveys and nearly 100 experts and senior executives), the authors applied a combination of the Analytic Hierarchy Process and the Simple Additive Weighting (or weighted sum) methods as two special cases of multi-criteria decision-making to assess nine real estate investment projects across Cambodia, Myanmar and Vietnam.

Findings

The results of this study indicated that Vietnam, Cambodia and Myanmar were the first, second and third most preferred countries for real estate investments, respectively. Moreover, the results clearly show a trade-off between perceived country risk and financial returns, indicating that a higher perceived country risk can be compensated for with higher financial returns.

Originality/value

Real estate investment decisions are usually made in an ad hoc manner in Southeast Asia. This study helps investors make more informed decisions when investing in real estate projects across three rapidly growing but significantly understudied Southeast Asian countries: Cambodia, Myanmar and Vietnam.

Details

Journal of Asia Business Studies, vol. 17 no. 6
Type: Research Article
ISSN: 1558-7894

Keywords

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