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Article
Publication date: 21 May 2009

Jing‐Lin Duanmu and Yilmaz Guney

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries…

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Abstract

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large market size, low GDP growth, high volumes of imports from China or India, and low corporate tax rates. We also find important differences between China and India. While Chinese FDI is drawn to countries with open economic regimes, depreciated host currencies, better institutional environments, and English speaking status, none of these factors are important for Indian FDI. Chinese FDI is also deterred by geographic distance and OCED membership. However, neither of these has any impact on Indian FDI.

Details

Journal of Asia Business Studies, vol. 3 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 11 March 2005

Peter J. Buckley, Jeremy Clegg, Adam R. Cross and Hui Tan

This paper explores the impact of China’s growing prominence in global and regional foreign direct investment (FDI) fl ows on the Southeast Asian countries as investment…

1031

Abstract

This paper explores the impact of China’s growing prominence in global and regional foreign direct investment (FDI) fl ows on the Southeast Asian countries as investment locations. Providing internal social and economic cohesion is maintained, China is likely to exert a greater pull on regional FDI after WTO accession. To benefit from China’s success, the Southeast Asian countries will need to replace deteriorating individual locational advantages relative to China with a superior regional one. The ASEAN Free Trade Agreement or the Asian Investment Area or both are likely to be important policy solutions.

Details

Multinational Business Review, vol. 13 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 19 November 2004

Peter J. Buckley, Jeremy Clegg and Chengqi Wang

The improvement in performance of Chinese domestically owned industry in 1995 and 2001 is strongly linked to inward foreign direct investment. Rising foreign presence contributes…

Abstract

The improvement in performance of Chinese domestically owned industry in 1995 and 2001 is strongly linked to inward foreign direct investment. Rising foreign presence contributes towards the narrowing of the performance gap between foreign and locally owned enterprises in China. While investment by overseas Chinese firms benefits overall Chinese industry throughout, developed country FDI only generated a positive impact in 2001. Inward FDI by both investor groups benefits Chinese state owned enterprises, but not until 2001 for collectively owned Chinese firms. The results support the use of inward FDI as a development policy tool, in conjunction with economic liberalization.

Details

Multinational Business Review, vol. 12 no. 3
Type: Research Article
ISSN: 1525-383X

Keywords

Book part
Publication date: 12 June 1998

Jeremy Clegg and Susan Scott-Green

In the literature on U.S. foreign direct investment (FDI) into the European Community, a consensus has emerged that U.S. multinational enterprises (MNEs) have been in the vanguard…

Abstract

In the literature on U.S. foreign direct investment (FDI) into the European Community, a consensus has emerged that U.S. multinational enterprises (MNEs) have been in the vanguard of corporate integration in Europe. This research on Japanese FDI has found evidence that Japanese MNEs have also adopted an integrated strategy in their servicing of the European market, although the UK appears to be the one country that has attracted a disproportionate amount of FDI. Nevertheless, it appears that Japanese firms have, like their U.S. counterparts, been responsive to the development of a pan-European market. Accordingly, it can be concluded that Japanese firms have contributed directly to the economic integration of Europe via their FDI.

Details

Multinational Location Strategy
Type: Book
ISBN: 978-0-76230-015-0

Article
Publication date: 17 November 2014

Miguel M. Torres and L. Jeremy Clegg

This paper aims to seek to demonstrate that a non-scientific approach to policy design causes policymakers to persist in the development and use of conventional and inefficient…

Abstract

Purpose

This paper aims to seek to demonstrate that a non-scientific approach to policy design causes policymakers to persist in the development and use of conventional and inefficient “top-down” policies. This paper takes the case of the design of official pro-internationalization policy, intended to promote internationalization through outward investment, to reveal inadequacies and inefficiencies in policy design. Through an analysis of the merits of introducing a “bottom-up” approach, it also aims to show how policy redesign would better yield the desired specific and effective impacts sought by policymakers.

Design/methodology/approach

A framework was developed, comprising a set of real policy measures, two indexes to quantify the alignment between government policies and firms’ strategies and a regression model to test the impact of the misalignment on firm performance. This framework uses primary empirical data.

Findings

The results are obtained through an item-by-item comparison between use and revealed, or perceived, importance of each type of public support and then, through the indexes, which rank the different types of incentives according to their importance and use. Analysis of these suggests that some measures could be more efficient, and that firms with higher levels of foreign market commitment tend to be more aligned with public policy, and benefit from it most, while those firms with a lower degree of internationalization are the least well served by policy support measures.

Originality/value

These results identify systematic weaknesses in policy design and point to the reasons for these weaknesses. The findings suggest that governments tend to craft “top-down” policy, based on high-level presumptions about the nature of all firms’ strategies towards internationalization and international expansion. We propose that these presumptions result from flawed evaluations of policy effectiveness overly influenced by existing foreign investors, to the detriment of the true and intended strategies of the actual target group of the least internationalized firms. It is concluded that to improve both the efficiency and the effectiveness of policy actions, the traditional “top-down” intervention paradigm of policy-making should be complemented by policy designed from the “bottom-up”, making use of reliable information about all firms’ strategies, and taking care to better identify natural target groups of firms according to their existing or potential resources and capabilities.

Details

The Multinational Business Review, vol. 22 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Book part
Publication date: 16 May 2024

Cyntia Vilasboas Calixto Casnici, Germano Glufke Reis, David Schulzmann, Marina Papanastassiou and Jeremy Clegg

Multinational enterprises (MNEs) in the agri-food sector are continuously transforming their global value chains (GVCs) to address sustainable development challenges of food…

Abstract

Multinational enterprises (MNEs) in the agri-food sector are continuously transforming their global value chains (GVCs) to address sustainable development challenges of food security (SDG2) and climate change (SDG13). However, the central role of non-governmental organisations (NGOs) in (re)creating GVCs across multilevel stakeholders through innovative approaches to solve sustainability challenges remains under investigated. This explorative study investigates how international NGOs influence the transformation of large-scale industrial animal agriculture to a more sustainable (cell-based) agri-food GVC. The authors conducted a case study on the Good Food Institute (GFI), an international NGO, that has been an active player in the transition to alternative sources of protein to solve animal-based agriculture sustainability issues. The results show that an international NGO can contribute to the transition to a more sustainable GVC and can enhance the GVC’s innovation capabilities.

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Keywords

Book part
Publication date: 12 November 2010

Mario I. Kafouros, Peter J. Buckley and Jeremy Clegg

Purpose – Integrating insights from the literatures on internationalization and knowledge externalities, we posit that the reservoirs of scientific knowledge residing in different…

Abstract

Purpose – Integrating insights from the literatures on internationalization and knowledge externalities, we posit that the reservoirs of scientific knowledge residing in different locations around the world have significant power in explaining interfirm performance variations. We assert that the ability to access and exploit such intangible resources differs considerably across multinationals, according to both firm-specific and exogenously determined factors.

Methodology – Unlike previous research that typically focuses on knowledge flows within one nation or between two countries, our statistical analysis combines firm-level data with industry-level information on 18 countries and 15 manufacturing sectors.

Findings and implications – The empirical findings indicate that the performance-enhancing effect of global knowledge reservoirs is positive and often higher than that of a firm's own knowledge. Whereas some multinationals excel at exploiting such intangible resources, others fail to do so successfully. In this respect, the results indicate that a firm's ability to benefit from global knowledge reservoirs is positively associated with its degree of international diversification, the intensity of its own research efforts, and exogenously determined opportunities pertaining to different technological domains.

Details

Reshaping the Boundaries of the Firm in an Era of Global Interdependence
Type: Book
ISBN: 978-0-85724-088-0

Book part
Publication date: 21 October 2019

L. Jeremy Clegg, Hinrich Voss and Liang Chen

The acronym and neologism “VUCA” is employed by management and some scholars to denote the unpredictability of the modern world and its impact on business. The VUCA approach…

Abstract

The acronym and neologism “VUCA” is employed by management and some scholars to denote the unpredictability of the modern world and its impact on business. The VUCA approach suggests that a rational firm’s response should be to: protect against volatility by engineering-in redundancy and slack, gather information to reduce uncertainty, develop expertise to make complexity computable, and learn heuristically to reduce ambiguity. We combine a critical perspective on the VUCA approach with the global factory model, popularly used to describe the flexibility sought by advanced economy multinational enterprises (MNEs) within the global value chain. Both VUCA and the global factory would seem to account less well for the expansion of emerging multinational enterprise (EMNEs) abroad, particularly the preference for equity-based control and inflexibility when seeking strategic assets. Also, both approaches fail to incorporate behavioral principles toward risk. Using International Business theory, we propose a research agenda that may help to make VUCA more tractable, the global factory more useful, and the internationalization of EMNEs more comprehensible.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

Content available
Book part
Publication date: 21 October 2019

Abstract

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Content available
Book part
Publication date: 16 May 2024

Abstract

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

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