Abstract
Through the combination of resource-based view (RBV) and institutional perspective, this study investigated how different types of ownership advantages interact to influence the entry mode decisions of emerging market multinational enterprises (EMNEs) investing in R&D overseas. Data from a survey of 82 Chinese manufacturing firms were analysed to determine that the technological capabilities (i.e., traditional ownership advantages) and political connections (i.e., non-traditional ownership advantages) jointly influence decisions by firms to choose Greenfield investments (i.e., resource-exploitation entry mode) over some sort of acquisition or joint venture (JV) (i.e., resource augmentation entry mode). Specifically, the study showed that strong political connections at home encourage Greenfield investments. Strong technological capabilities have relatively little direct impact, but interact with political connections to encourage Greenfield investments.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.