City Research Online

Abstract

Despite increasing research on outward foreign direct investment (OFDI) by firms from emerging economies, our understanding of the relationship between domestic operations and international diversification of these firms is still limited. Using a unique dataset of Chinese listed firms, we examine the impact of domestic diversification on their international diversification. We find that international diversification is positively affected by firms' domestic industrial and domestic regional diversification. We also find that top management team (TMT)'s previous international experience strengthens the impact of domestic diversification on firms' international diversification, whereas TMT's prior political connections weakens the impact of domestic diversification on international diversification.

Publication Type:	Article
Additional Information:	NOTICE: this is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, Volume 23, Issue 2, April 2014, Pages 455–467, http://dx.doi.org/10.1016/j.ibusrev.2013.07.002.
Publisher Keywords:	Domestic diversification, Emerging economies, International diversification, Top management team
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Departments:	Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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