Ethnic ties, location choice, and firm performance in foreign direct investment: a study of Taiwanese business groups FDI in China

Jean, R.-J. B., Tan, D. and Sinkovics, R. R. (2011) Ethnic ties, location choice, and firm performance in foreign direct investment: a study of Taiwanese business groups FDI in China. International Business Review, 20(6), pp. 627-635. (doi: 10.1016/j.ibusrev.2011.02.012)

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Abstract

This paper examines ethnic ties and their impact on FDI location choice and firm performance. Drawing on social network theory and using data from 88 Taiwanese business groups, the study tests the impact of ethnic ties on firm FDI location choice and performance outcomes in China. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. In contrast to our expectations however, ethnic ties do not help to improve firm performance in China. Implications of these results are discussed in view of existing literature and future research opportunities are delineated.

Item Type:Articles
Keywords:China, ethnic, FDI, market entry, social ties.
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Sinkovics, Professor Rudolf
Authors: Jean, R.-J. B., Tan, D., and Sinkovics, R. R.
College/School:College of Social Sciences > Adam Smith Business School > Management
Journal Name:International Business Review
Publisher:Elsevier
ISSN:0969-5931
ISSN (Online):1873-6149
Published Online:29 March 2011

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