Abstract
This study proposes that emerging market firms (EMFs) tend to imitate the outward foreign direct investment (OFDI) decision made by their interlocked partners and high-status firms in the same industry. We further posit that interlocked partners and high-status firms have differential values in gaining legitimacy and providing key information for EMFs. Moreover, when EMFs’ performance exceeds the aspiration level, they will be more likely to imitate high-status firms and less likely to imitate interlocked partners as high-status firms can provide information on high-valuable OFDI and high level of legitimacy or reputation despite the associated challenges. We validated these hypotheses by using panel data for a sample of Chinese listed firms during 2001–2017.
Published Version
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