Resource Seeking Research Articles

Drivers and Motives for Chinese Outward Foreign Direct Investments in Africa

The authors set out to empirically test the degree of Chinese investments in Africa by systematically examining the explanatory value of existing theoretical motivations for foreign direct investment (FDI) for the period of 2003–2009. All else equal, the authors find that African countries enjoy a higher likelihood of Chinese outward FDI than the rest of the world. Moreover, they find that Chinese firms invest in African markets for market-seeking, natural resource–seeking, and strategic asset–seeking motives; hence, the motives for Chinese FDI in Africa seem to match those of Western firms’ investments in global markets.

The formalization of the university: rules, roots, and routes

This article examines changes in the formal organization of two universities and two schools within these universities, the University of Oslo and Stanford University. We focus on role differentiation, rule formation, and resource seeking structures and describe organizational developments along these dimensions. We find that both these universities travel similar routes involving greater role differentiation, rule formation, and resource seeking activities. Both universities more explicitly function as organizational actors influenced by a global environment that favors the more socially embedded and the more managed university. However, we also find persistent differences in how these universities respond to the global environment, differences that reflect the different historical roots of different universities. A tradition of professorial self-governance at the University of Oslo, for example, fosters greater resistance to the managed university ideal. The latter emerges earlier and develops to a greater degree at Stanford University. We conclude that university routes are influenced both by common (now globalized) rules of the game and by their different organizational roots. We use ideas from the neo-institutional and path dependency perspectives to make sense of both growing commonalities and persistent differences.

For Love or Money? The Influence of Personal Resources and Environmental Resource Pressures on Human Mate Preferences

AbstractA growing body of evidence shows that human mating preferences, like those of other animal species, can vary geographically. For example, women living in areas with a high cost of living have been shown to seek potential mates that can provide resources (e.g., large salaries). In this study, we present data from a large (N = 2944) nationally representative (United States) sample of Internet dating profiles. The profiles allowed daters’ to report their own income and the minimum income they desired in a dating partner, and we analyzed these data at the level of zip code. Our analysis shows that women engage in more resource seeking than men. We also find a positive relationship between cost of living in the dater's zip code and resource seeking among both men and women. Importantly, however, this relationship disappears if one's own income is accounted for in the analysis; that is, individuals of both sexes seek mates with an income similar to their own, regardless of local resource pressures. Our data highlight the importance of considering individual characteristics when measuring the effects of environmental factors on behavior.

China’s Outward Direct Investment: Evidence from a New Micro Dataset

More than seventy percent of China’s outward direct investment (ODI), according to the Ministry of Commerce statistics, is invested in Hong Kong, the British Virgin Islands, and the Cayman Islands. Using a unique micro-level dataset collected by the Heritage Foundation that documents individual ODI transactions, we first show that the official statistics and the Heritage Foundation measure of China’s ODI are correlated only in the sample of non-haven economies, because the official statistics treat tax havens as final destinations rather than transit points. On average, a dollar increase in the Heritage Foundation measure of ODI is associated with less than a fifteen cent increase in the official ODI among the non-haven economies, and the downward bias is even larger for investment in energy. We also document that the sharp increase in the official ODI to Hong Kong coincides with the rise in the Heritage Foundation measure of ODI to OECD countries since 2007. Finally, we show that some of the well-documented stylized facts about the pattern of China’s ODI are artifacts of the mismeasurement of the official data. For instance, contrary to previous findings, we find no evidence that China’s ODI is attracted to host countries with poor governance, and that neither cultural proximity nor geographical distance is a major determinant of China’s ODI. Furthermore, the Heritage Foundation data suggest that the resource seeking motive of China’s ODI is at least as strong as the market seeking motive.

Technology and Corporate Scope: Firm and Rival Innovation as Antecedents of Corporate Transactions

AbstractThis paper studies the role of technological innovation as an antecedent of changes in corporate scope. It argues that technological innovations prompt the firm to reconfigure its corporate portfolio—to redeploy resources to areas of new opportunity while it divests out of marginal businesses. Results from a cross‐industry sample of U.S. manufacturing firms show successful innovation by a firm is followed by both expansion into new areas through complementary resource seeking acquisitions and divestment out of existing noncore businesses. This relationship is found to be moderated by the level of investible resources available to the firm, and supports the notion of scarce resources as a constraint on firm scope. In addition, firms are found to change their corporate scope in response to rival innovation. Copyright © 2011 John Wiley & Sons, Ltd.

Foreign Direct Investment into Developing Asian Countries: The Role of Market Seeking, Resource Seeking and Efficiency Seeking Factors

According to eclectic theory of Dunning, FDI could be of four types: market seeking, resource seeking,efficiency seeking and strategic asset seeking. Market seeking factors of FDI such as market size, market growth,structure of domestic market, etc. aim at penetrating the local markets of host countries. While resource seekinginvestments are made in order to have access to cheap raw material, pool of labor, infrastructure, etc. Newsources of competitiveness, economies of scope and specialization and low cost of production are some of theefficiency seeking factors of FDI. An attempt is made to study the impact of market seeking, efficiency seekingand resource seeking factors of host countries on FDI inflows of host countries by taking sample 10 Asiancountries in the time period 1991 to 2008. Panel regression results show that all categories of FDI motivatingfactors have a significant impact on FDI inflows.

An analysis of China‐Nigeria investment relations

PurposeThe purpose of this paper is to analyze the economic relation between China and Nigeria in the area of foreign direct investment (FDI).Design/methodology/approachThe study employed the use of quantitative (descriptive analysis such as ratios, percentages and correlation as well as cross tabulations), qualitative (key informant interviews and surveys) and case studies – for example the railway transport project handled by the Chinese. The use of surveys assisted the study to generate firm‐level data that allowed the analysis of China‐Nigeria investment relations with respect to concerns such as the employment effects as well as the competitive and/or complementary effects of Chinese firms to local firms. The use of content analysis of relevant documents and reports obtained from various sources was equally involved to corroborate the results obtained from primary data.FindingsThe findings reveal that the major characteristic of Chinese investment in Nigeria is its concentration in a few sectors that are of strategic interest to China, especially in the extractive industries which are carried out largely by state‐owned enterprises or joint ventures. In addition, the analysis clearly shows that the engagement with China, just like any bilateral relationship, has some advantages and disadvantages and that optimal outcome of the engagement will depend on the policies and institutions that are put in place to maximize the complementary effects and to minimize the competing effects. However, there is need to ensure implementation of laws and regulations in Nigeria and to ensure compliance by the Chinese investors.Originality/valueThis is the first study to carry out an empirical analysis of the China‐Nigeria relation. The study was able to establish the sectors where the incoming FDI from China is directed and the extent at which Chinese FDI is bundled with inflows of aid. The study was also able to show that the incoming Chinese FDI are in resource seeking, and the output targeted at the external market. The study will be of value to academia and to policy makers who are interested in studying the China‐Africa relation.

Offshoring and Outsourcing Business Services to Central and Eastern Europe: Some Empirical and Conceptual Considerations

The global structural shift towards service-based foreign direct investment (FDI) across the world is a relatively recent phenomenon resulting from the increased tradability of services. Although India and Ireland have traditionally been viewed as the main receiver countries, the Central and Eastern European (CEE) region is becoming an increasingly popular destination for business service offshoring and outsourcing. The article focuses first on the empirical and conceptual challenges to understanding the offshoring and outsourcing of business services in the context of significant difficulties with their definition, categorization and classification. It discusses the shortcomings of quantitative data and provides a theoretical framework needed to understand the specific patterns of service sector FDI in the context of CEE. Second, the article outlines the current position of CEE countries as destinations for service sector FDI: it analyses the patterns of service sector investment and discusses the reasons for its emergence as a receiver region. The empirical material is drawn from 30 interviews conducted with senior managers in business service foreign investment in the Czech Republic, Hungary, Poland and Slovakia. The article concludes that the composition of services FDI flows is changing, reflecting the growth of resource seeking vertical investment in the region. The share of CEE countries in the global flows of this type of investments is still low, but the region shows a growing potential. Its attractiveness is based on a number of factors, like availability of skilled labour with strong language skills, low costs, favourable business and stable political environment, well-developed infrastructure and geographical and cultural proximity to Western Europe.

Internationalization Motivations and Foreign Market Entry Modes <br>http://dx.doi.org/10.5585/riae.v10i1.1719

The motivations for the internationalization of firms influence the selection of foreign entry modes. In this article we use John Dunning’s (1993) classification, which distinguishes four primary motives to invest overseas – market seeking, resource seeking, strategic asset seeking and efficiency seeking –, conceptually discussing the impact of the selected foreign entry modes. The methods and strategies of multinational corporations (MNCs) are chosen in a broader framework, where internationalization motivations converge with the exploitation, or exploration, of firm-specific advantages. Our analysis is supported by a set of theoretical propositions. The results demonstrate that MNCs must develop the best possible combination of strategy-structure for their international operations, and yet conceive a casuistic analysis of each individual operation. We have therefore contributed to a better understanding of the selection of foreign market entry modes as a reflection of strategic choices or motivations.

Korean FDI in India: Perspectives on POSCO-India Project

This paper reviews the dynamics of POSCO-India project, a combined “mine-steel plant-port” project in Orissa, India during the last five years. In contrast with the market oriented FDI undertaken by Korean companies like LG, Samsung, HMI in India, POSCO-India project is a natural resource seeking FDI that has faced hurdles from the very beginning in setting up its integrated steel plant. Especially there has been strong protest against this Korean project from the prospective displaced persons. The main reasons for the delay in the project are the failure to build local political consensus on the project, regulatory complexities, dispute on government record on the land, and compensation. We conclude that it is important to recognize the difference between the market oriented FDI and resource seeking FDI like Posco-India project. In this regard, the reasonable and fair compensation for the affected peoples is essential. Creating sustainable new employment in the relocation zone is necessary as well. Framing of socially responsible resettlement policy and fostering of local consensus on the cost and benefits of resource seeking FDI projects can be useful in expediting the implementation of such projects.

The Performance of Chinese Resource Seeking Overseas Investment

The Performance of Chinese Resource Seeking Overseas Investment

Impacts of institutional pressures and the strength of market supporting institutions in the host country on the ownership strategy of multinational enterprises: theoretical discussion and propositions

The ownership strategy of multinational enterprises (MNEs) i.e. the choice between wholly owned subsidiary (WOS) or international joint venture (IJV) is an extensively studied topic in international business studies. Many past studies concentrated on transactional, economic, location attraction, resource seeking and learning rationales for the ownership strategy of MNEs. However, it is important to note that MNEs enter a new institutional environment also when they enter new international markets. Therefore, the ownership strategy of MNEs is also influenced by the external as well as internal institutions. This paper attempts to address the impacts of different institutional pressures on ownership strategy of MNEs using the arguments from institutional theory. The paper also includes discussion about the strength of market supporting institutions in the host country and its impacts on the ownership strategy of MNEs. On the basis of the theoretical discussion, several propositions are developed in this paper. These propositions relate the ownership strategy of MNEs with the impacts of internal and external institutional pressures on it. It is also proposed to consider the impact of strength of market supporting institutions in the host country on the ownership strategy specifically. When the host country has well developed institutions supporting market conforming values, they can moderate the impacts of coercive and normative pressures from external institutions on the MNEs.

Seeking Resources or Seeking Knowledge? A Study of Mobility and Knowledge Creation Using Micro Data

I study the effect of inventor mobility on knowledge creation and make two significant departures from prior literature. In contrast to prior studies based on large patent datasets or surveys, I use employment, travel and demographic data for 1315 inventors at an emerging market R&D center of a Fortune 50 multinational. Also, the prior literature has focused on how mobility helps inventors access distant knowledge. In contrast I hypothesize that mobility could additionally help inventors secure resources centralized at a distant location. To test this and to account for endogeneity and selection, I consider inventors who could not travel because they got married/had children and match them to similar inventors without such constraints. I find that not being to travel leads to lower patenting over the next two years. I also find support for the resource seeking hypothesis - travel to the headquarters leads to higher patenting, however travel to non-headquarter R&D locations in Europe and Asia does not have the same effect. Given the centralization of resources at the headquarters for the MNC that I study, I argue that in this context mobility of inventors is related to securing resources for knowledge creation.

Manufacture upgrade and interfirm relationship development: the case of electronics firms in the Pearl River Delta

Despite significant economic benefits of manufacture upgrade from original equipment manufacturing, through to original design manufacturing to own brand manufacturing, research on interfirm relationship development during the process of manufacture upgrade has remained underdeveloped. This article examines different types of interfirm relationships and their impact on manufacture upgrade using case studies of electronics firms located in the Pearl River Delta. The findings suggest that three iterative processes support relationship development: resource seeking, learning and networking. These processes influence relationship development for both vertical and horizontal relations through trust-based personal relationships. In particular, the insights provided by relational view of interfirm relationships appear to complement and support economic goals of governance mechanisms.

Triarchic conceptualization of psychopathy: Developmental origins of disinhibition, boldness, and meanness

The clinical concept of psychopathy ("psychopathic personality") is generally considered to entail persistent behavioral deviancy in the company of emotional-interpersonal detachment. However, longstanding debates continue regarding the appropriate scope and boundaries of the concept. Here, we review alternative historic descriptions of the disorder together with empirical findings for the best-established assessment instruments in use with adolescents and youth as a basis for formulating an integrative, triarchic model of psychopathy. The essence of the triarchic model is that psychopathy encompasses three distinct phenotypic constructs: disinhibition, which reflects a general propensity toward problems of impulse control; boldness, which is defined as the nexus of social dominance, emotional resiliency, and venturesomeness; and meanness, which is defined as aggressive resource seeking without regard for others ("dysaffliated agency"). These differing phenotypic components are considered in terms of relevant etiologic and developmental pathways. The triarchic conceptualization provides a basis for reconciling and accommodating alternative descriptive accounts of psychopathy, and a framework for coordinating research on neurobiological and developmental processes contributing to varying manifestations of the disorder.

The Love/Avon Army of Women: A “just in time” resource to encourage research in women

1535 Background: One of the barriers to finding the cause of breast cancer is the difficulty basic scientists have in involving healthy women and obtaining human tissues, fluids, and information processed according to their needs. The Dr. Susan Love Research Foundation has collaborated with basic scientists successfully recruiting community women for studies. These efforts led to the Love/Avon Army of Women (AOW), a new “just in time” resource seeking to partner women with scientists to find the cause and prevention of breast cancer. Methods: The AOW is a pool of volunteers who have registered online ( www.armyofwomen.org ) that they are willing to participate in research. Peer-reviewed, funded projects submitted by researchers are reviewed by the AOW Scientific Advisory Committee for eligibility. An eBlast is sent to all AOW volunteers describing the study, and eligible women RSVP to the AOW for a secondary screen. The list is then sent to the researcher. If needed, referrals are made to a regional AOW Center for specimen collection, processing, and shipment. All scientists participate in a webcast with the eligible volunteers to explain the research before the study and describe the overall results at the end, ensuring a partnership between the women and the investigators. Results: AOW recruitment was initiated October 1, 2008, by Dr. Love on national media with the goal of creating a resource of 1,000,000 women available for researchers. To date over 260,000 women have joined. All ethnicities, ages (18–89), and states are represented. The first eBlast was sent out in mid-October for the Sister Study to accrue the last 5,000 women needed from diverse backgrounds. In 48 hours, 1,600 women had responded and qualified, and in 2 months, 2,500 had signed up with a 90% enrollment rate. The second study required women who were breastfeeding and scheduled for a breast biopsy. In one week, 30 eligible women were identified. Conclusions: The Love/Avon Army of Women is a just in time resource for breast cancer scientists to obtain exactly the specimens: breast or adipose tissue, ductal fluid, urine, saliva, blood, or information processed exactly as needed. This new partnership between women and scientists promises to revolutionize research and accelerate efforts to find the cause and prevention of breast cancer. No significant financial relationships to disclose.

Why Do Firms Invest Abroad? An Analysis of the Motives Underlying Foreign Direct Investments

Although FDI have been at the forefront of economic debate since a long time, economists have not yet developed a unified framework for their investigation. In this paper, we put forward the idea that an essential point to analyze FDI concerns their underpinning motives. Motives are at the core of FDI and FDI are only but one of different alternative means for firms to grasp an opportunity in a foreign country. We discuss the factors that shape the set of available alternatives and analyze those affecting the decision to engage in FDI (internalisation determinants), along with those influencing their localisation (localisation determinants). Starting from Dunning (1993) we put forward a revised taxonomy of FDI motives consistent with this framework - resource seeking, market seeking and non-marketable asset seeking. In order to show its practical implications, we survey common empirical issues on FDI showing how our analysis can shed light on seemingly contradictory empirical results.

Foreign Entry Modes Under Institutional Pressures: The Impact of Strategic Resource Seeking and Market Seeking Strategies

Multinational corporations (MNCs) are subject to the various dimensions of the external institutional environments. Institutional theory suggests that MNCs need to conform to the prevailing rules, norms and procedures of the locations where they operate in order to survive and grow. This means that MNCs need to develop the best possible configuration of strategy-structure for their worldwide operations. Previous research has noted that in these conditions firms may simply seek to follow a referent other. However, MNCs’ specific strategy for a focal foreign operation is likely to determine the entry mode for each host country. In certain circumstances it may be whether MNCs are pursuing a market-seeking strategy or a strategic resource seeking strategy that shapes the entry mode in face of the prevailing institutional pressures. We contribute to the understanding of entry modes into foreign markets as a reflection of a strategic choice that is bound by institutional constraints.

Support for mending the matrix: resource seeking by butterflies in apparent non-resource zones

In conserving organisms, a bipolar view has generally been adopted of landscapes, in which resources are allocated to patches of habitats and the matrix ignored. Allocating additional resources to the matrix would depend on two conditions: first, that organisms search for resources in landscapes regardless of differences in vegetation types and resource availability; second, that when resources occur in the matrix they are used by species. Behavioural data linked to biotope and substrate types, on three pierid species (Pieris brassicae, P. rapae, P. napi), have been examined to explore the relationship between flight modes and resource availability. Search flight and resource use, taken as measures of resource quests, occur extensively in all biotopes and over all substrates in addition to direct linear flight, more typical of butterflies when migrating between habitat units. Resource seeking and using even exceed direct flight in some biotopes that have been regarded generally as lacking in resources for these butterflies. For example, such is the case for P. brassicae in woodland and for P. rapae in scrub. This finding supports the view for repairing the matrix and enhancing the general countryside outside habitat patches with resources increasingly being made for organisms. The proviso is that species’ requirements are adequately researched and resourced so as not to become sinks.

Entrepreneurial Team Formation: An Exploration of New Member Addition

We explored in this article the process of entrepreneurial team formation. As theory specific to this topic is scant, we drew first on disparate views of team formation and its correlates; we then called upon in–depth interviews to provide deeper, nuanced insights into this dynamic process of creation. Our focus is team member addition. We identified resource–seeking and interpersonal attraction as primary alternative motivators for new teammate addition; however, we also illustrated how these motivations may be complementary in practice. Finally, we considered in some depth how new member identification and selection processes may unfold as new ventures are formed.