Extending Dunning's Investment Development Path: The role of home country institutional determinants in explaining outward foreign direct investment

International Business Review

Volumn 22, Issue 3, 2013, Pages 615-637

  Stoian, Carmen ^a  

^a UNIVERSITY OF KENT   (United Kingdom)

Author keywords

Central and Eastern Europe (CEECs); Institutional theory; Investment Development Path (IDP); Outward foreign direct investment (OFDI)

Indexed keywords

EID: 84875521196     PISSN: 09695931     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ibusrev.2012.09.003     Document Type: Article

References (118)

1. Andreff W. The new multinational corporations from transition countries. Economic Systems 2002, 26(4):371-379.
2. Andreff W. The new multinational corporations: outward foreign direct investment from post-communist economies in transition. Transnational Corporations 2003, 12(2):73-118.
3. Barry F., Holger G., McDowelll A. Outward FDI and the investment development path of a late-industrializing economy: Evidence from Ireland. Regional Studies 2003, 37(4):341-349.
4. Bellak C. The Austrian investment development path. Transnational Corporations 2001, 10(2):107-134.
5. Bevan A., Estrin S., Meyer K. Foreign investment location and institutional development in transition economies. International Business Review 2004, 13(1):43-64.
6. Bhaumik S.K., Driffield N. Direction of outward FDI of EMNEs: Evidence from the Indian pharmaceutical sector. Thunderbird International Business Review 2011, 53(5):615-628.
7. Blanke-Ławinczk K. Marketing dynamics and management excellence: The sources of successful internationalization of a food processing company from a transition economy. Journal of International Food & Agrobusiness Marketing 2009, 21(1):134-148.
8. Boateng A., Qian W., Tianle y. Cross-border M&As by Chinese firms: An analysis of strategic motives and performance. Thunderbird International Business Review 2008, 50(4):259-270.
9. Buckley P.J., Casson M. A theory of international operations. The internationalisation process of the firm: A reader 1976, 55-60. International Business Thompson, London. P.J. Buckley, P.N. Ghauri (Eds.).
10. Buckley P.J., Castro F.B. The investment development path: The case of Portugal. Transnational Corporations 1998, 7(1):1-15.
11. Buckley P.J., Cleg L.J., Cross A.R., Liu X., Voss Zheng P. The determinants of Chinese outward foreign direct investment. Journal of International Business Studies 2007, 38(4):499-518.
12. Cantwell J. Technological advantage as a determinant of the international economic activity of the firms. Discussion Papers in International Investment and Business Studies No. 105 1981, University of Reading, Reading.
13. Cantwell J. The reorganization of European industries after integration: Selected evidence on the role of transnational enterprise activities. Journal of Common Market Studies 1987, 36(1):127-152.
14. Cantwell J., Dunning J.H., Lundan S.M. An Evolutionary approach to understanding international business activity: The co-evolution of MNEs and institutional environment. Journal of International Business Studies 2010, 41(4):567-586.
15. Cheng J.L.C., Henisz W., Roth K., Swaminathan A. From the editors: Advancing interdisciplinary research in the field of international business: Prospects: issues and challenges. Journal of International Business Studies 2009, 40:1070-1074.
16. Chou K.-H., Chen C.-H., Mai C.-C. The impact of third country effect and economic integration on China's outward FDI. Economic Modelling 2011, 28(5):2154-2163.
17. Chudnovski D., Lopez A. A third wave of FDI from developing economies: Latin American TNCs in the 1980. Transnational Corporations 2000, 9(1):31-73.
18. Cuervo-Cazurra A., Genc M. Transforming disadvantages into advantages: developing countries MNEs in the least developed countries. Journal of International Business Studies 2008, 39(6):957-979.
19. Cui L., Jiang F. Behind ownership decision of outward FDI: Resources and institutions. Asia Pacific Journal of Management 2010, 27(4):751-774.
20. Cui L., Jiang F., Stening B. The entry-mode decision of Chinese outward FDI: Firm resources, industry conditions and institutional forces. Thunderbird International Business Review 2011, 53(4):483-499.
21. da Silva J.F., da Rocha A., Carneiro J. The international expansion of firms from emerging markets: Toward a typology of Brazilian MNEs. Latin American Business Review 2009, 10(2/3):95-115.
22. Damijan J.P., Polanec S., Prašnikar J. Outward FDI and productivity: Micro-evidence from Slovenia. World Economy 2007, 30(1):135-155.
23. Demekas, D. G. (2007). Are European emerging markets different? Keynote speech, 5th Emerging Market Workshop organised by the European System of Central Banks and the Austrian National Bank, Vienna, March 5-6.
24. DiMaggio P.J., Powel W.W. The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review 1983, 48(20):147-160.
25. Dunning J.H. Trade, location of economic activity and the multinational enterprise: A search for an eclectic approach. The international allocation of economic activity 1977, 395-418. Macmillan, London. B. Ohlin, P.O. Hesseborn, P.E. Wijkman (Eds.).
26. Dunning D.H. Towards an eclectic theory of international production: Some empirical tests. Journal of International Business Studies 1980, 11(1):9-31.
27. Dunning J.H. Explaining the international direct investment position of countries: Towards a dynamic or developmental approach. Weltwirtschaftliches Archiv 1981, 119(1):30-64.
28. Dunning J.H. The investment development cycle revisited. Weltwirtschaftliches Archiv 1986, 122(4):667-677.
29. Dunning J.H. Explaining International Production 1988, George Allen and Unwin, London.
30. Dunning J.H. Multinational enterprises and the global economy 1993, Addison-Wesley, Workingham.
31. Dunning J.H. The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies 1998, 19(1):1-19.
32. Dunning J.H. The eclectic (OLI) paradigm of international production: Past, present and future. International Journal of the Economics of Business 2001, 8(2):173-190.
33. Dunning J.H., Lundan S.M. Institutions and the OLI paradigm of the multinational enterprise. Asia Pacific Journal of Management 2008, 25(4):573-593.
34. Dunning J.H., Lundan S.M. Multinational enterprises and the global economy 2008, Edward Elgar, Cheltenham. 2nd ed.
35. Dunning J.H., Narula R. Transpacific foreign direct investment and the investment development path: The record assessed. Essays in International Business, 10 March 1994, South Carolina: University of South Carolina, Columbia.
36. Dunning J.H., Narula R. The investment development path revisited: Some emerging issues. Foreign direct investment and governments. Catalysts for economic restructuring 1998, Routledge, London. J.H. Dunning, R. Narula (Eds.).
37. Dunning D.H., Kim C., Lin J. Incorporating trade into the investment development path: A case study of Korea and Taiwan. Oxford Development Studies 2001, 29(2):145-154.
38. Durán J.J., Ubeda F. The investment development path: A new empirical approach and some theoretical issues. Transnational Corporations 2001, 10(1):1-34.
39. Durán J.J., Ubeda F. The investment development path of newly developed countries. International Journal of the Economics of Business 2005, 12(1):123-137.
40. European Bank for Reconstruction and Development. (2010a). Transition report 2010. London: EBRD. Accessed 16.10.11. http://www.ebrd.com/downloads/research/transition/tr10.pdf.
41. European Bank for Reconstruction and Development. (2010b). Transition indicators by country. Accessed 08.10.11. http://www.ebrd.com/pages/research/economics/data/macro.shtml.
42. European Bank for Reconstruction and Development Transition report 2011 2011, EBRD, London, http://www.ebrd.com/downloads/research/transition/tr11.pdf Accessed 05.08.12.
43. Eden L. Editorial. Letter from the Editor-in-Chief: lifting the veil on how institutions matter in IB research. Journal of International Business Studies 2010, 41(1):175-177.
44. Eren-Erdogmus I., Cobanoglu E., Yalcin M., Ghauri P. Internationalization of emerging market firms: The case of Turkish retailers. International Marketing Review 2010, 27(3):316-337.
45. Erramilli M.K., Agarwal S., Kim S.S. Are firm specific advantages location specific too?. Journal of International Business Studies 1997, 28(4):735-757.
46. Euromonitor International Passport GMID 2011, Euromonitor International, London, http://www.euromonitor.com/ Accessed 01.10.11.
47. Gammeltoft P., Pradhan J.P., Goldstein A. Emerging multinationals: Home and host country determinants and outcomes. International Journal of Emerging Markets 2010, 5(3/4):254-265.
48. Ginevičius R., Tvaronavičienė M. Inward and outward FDI in Lithuania and Estonia: Review of patterns in neighbourhood countries. Journal of Business Economics and Management 2005, 6(3):179-188.
49. Globeram S., Shapiro D. Outward FDI and the economic performance of emerging markets. The rise of transnational corporations from emerging markets: Threat or opportunity? 2008, 229-271. Cheltenham, Edward Elgar. K.P. Sauvant, K. Mendoza, I. Ince (Eds.).
50. Goh S.K., Wong K.N. Malaysia's outward FDI: The effects of market size and government policy. Journal of Policy Modelling 2011, 32(3):497-510.
51. Hattari R., Rajan R. India as a source of outward direct investment. Oxford Development Studies 2010, 38(4):497-518.
52. Hoskisson R.E., Eden L., Lau C.M., Wright M. Strategy in emerging economies. Academy of Management Journal 2000, 43(3):249-267.
53. Hymer, S.H. (1960). The International Operations of National Firms: A Study of Direct Foreign Investment. PhD Dissertation. Published posthumously. 1976. Cambridge, MA: MIT Press.
54. JIM Emerging multinationals, emerging theory: Macro and micro-level perspectives. Journal of International Management 2010, 16(2):95-101.
55. Kalotay K. Outward FDI from Central and Eastern European countries. Economics of Planning 2004, 37(1):141-172.
56. Kalotay K. Outward foreign direct investment from Russia in a global context. Journal of East-West Business 2005, 11(3/4):9-22.
57. Kalotay K. Review. Russian transnationals and international investment paradigms. Research in International Business and Finance 2008, 22(1):85-107.
58. Kalotay K., Sulstarova A. Modelling Russian outward FDI. Journal of International Management 2010, 16(2):131-142.
59. Kang Y., Jiang F. FDI location choice of Chinese multinationals in East and Southeast Asia: Traditional economic factors and institutional perspective. Journal of World Business 2012, 47(1):45-53.
60. Khanna T., Palepu K. Emerging giants: building world class companies in developing economies. Harvard Business Review 2006, 84(100):60-70.
61. Klein S., Wöcke A. Emerging global contenders: The South African experience. Journal of International Management 2007, 13(3):319-337.
62. Kogut B. Foreign direct investment as a sequential process. The multinational corporations in the 1980 1983, MIT Press, Cambridge, MA. C.P. Kindleberger, D.P. Audretsch (Eds.).
63. Kogut B., Chang S.J. Technological capabilities and Japanese direct investment in the United States. Review of Economics and Statistics 1991, LXXIII:401-413.
64. Kolodko G.M. From shock to therapy. The political economy of postsocialist transformation 2000, UNU/Wider and Oxford University Press, Helsinki and Oxford.
65. Kolstag I., Wiig A. What determines Chinese outward FDI?. Journal of World Business 2012, 47(1):26-34.
66. Kostova T., Roth K., Dacin T. Institutional theory in the study of MNCs: A critique and new directions. Academy of Management Review 2008, 33(4):994-1006.
67. Kyrkilis D., Pantelidis P. Macroeconomic determinants of outward foreign direct investment. International Journal of Social Economics 2003, 30(7):827-836.
68. Lall S. Monopolistic advantages and foreign involvement by US manufacturing industry. Oxford Economic Papers 1980, 32(1):102-122.
69. Lall S. The investment development path: Some conclusions. Foreign direct investment and governments. Catalysts for economic restructuring 1996, Routledge, London. J.H. Dunning, R. Narula (Eds.).
70. Lavigne M. The economics of transition: From social economy to market economy 1999, Macmillan, London.
71. Lavigne M. Ten years of transition: A review article. Communist and Post-Communist Studies 2000, 33(4):475-483.
72. Liu X., Buck T., Shu C. Chinese economic development, the next stage: Outward FDI?. International Business Review 2005, 14(1):95-115.
73. Luo Y., Tung R.L. International expansion of emerging market enterprises: a springboard perspective. Journal of International Business Studies 2007, 38(4):481-498.
74. Luo Y., Xue Q., Han B. How emerging market governments promote outward FDI: Experience from China. Journal of World Business 2010, 45(1):68-79.
75. Meyer K.E., Nguyen H.V. Foreign investment strategies and sub-national institutions in emerging markets: Evidence from Vietnam. Journal of Management Studies 2005, 42(1):63-93.
76. Meyer K.E., Peng M.W. Probing theoretically into Central and Eastern Europe: Transactions, resources and institutions. Journal of International Business Studies 2005, 36(6):600-621.
77. Meyer J.W., Rowan B. Institutional organizations: Formal structure as myth and ceremony. American Journal of Sociology 1977, 83:340-363.
78. Mishra A., Dally K. Effect of quality of institutions on outward foreign direct investment. The Journal of International Trade and Economic Development 2007, 16(2):231-244.
79. Mork R., Yeung B., Zhoa M. Perspectives on China's outward foreign direct investment. Journal of International Business Studies 2008, 39:337-350.
80. Narula R. Mutlinational investment and economic structure. Globalisation and competitiveness 1996, Routledge, New York and London.
81. Nayyar D. The internationalisation of firms from India: Investment, mergers and acquisitions. Oxford Development Studies 2008, 36(1):111-131.
82. North D.C. Institutions, institutional change and economic performance 1990, Cambridge University Press, Cambridge.
83. Pananond P. The changing dynamics of Thai multinationals after the Asian economic crisis. Journal of International Management 2007, 13(3):356-375.
84. Pantelidis P., Kyrkilis D. A cross country analysis of outward foreign direct investment patterns. International Journal of Social Economics 2005, 32(6):510-519.
85. Pearce R.D. The internationalisation of sales by leading enterprises: Some firm, industry and country determinants. Discussion Papers in International Investment and Business Studies, Series B. No. 135 1989, University of Reading, Reading.
86. Peng M.W. Towards an institution-based view of business strategy. Asia Pacific Journal of Management 2002, 19(2/3):251-267.
87. Peng M.W. Institutional transitions and institutional choices. Academy of Management Review 2003, 28:275-296.
88. Peng M.W., Wang D.Y., Jiang L.Y. An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies 2008, 39(5):920-936.
89. Peng M.W., Sun S.L., Pinkham B., Chen H. The institution-based view as a third leg for the strategy tripod. Academy of Management Perspectives 2009, 23(4):63-81.
90. Porter M. The competitive advantage of nations 1990, New York, Free Press.
91. Ramamurti R. What have we learned about emerging-market MNEs?. Emerging multinationals in emerging markets 2009, 309-326. Cambridge University Press, Cambridge. R. Ramamurti, L. Singh (Eds.).
92. Ramasamy B., Yeung M., Laforet S. China's outward foreign direct investment: Location choice and firm ownership. Journal of World Business 2012, 47(1):2012.
93. Rugraff E. Strengths and weaknesses of the FDI paths of the Central European countries. Post-Communist Economies 2010, 22(1):1-17.
94. Saez L., Chang C. The political economy of global firms from India and China. Contemporary Politics 2009, 15(3):265-286.
95. Salehizadeh M. Emerging economies' multinationals: Current status and future prospects. Third World Quarterly 2007, 28(6):1151-1166.
96. Scott W.R. Institutions and Organizations 1995, Sage, Thousand Oaks, CA.
97. Scott W.R. The changing world of Chinese enterprises: An institutional perspective. Management of enterprises in the People's Republic of China 2002, 59-78. Kluwer Academic Press, Boston. A.S. Tsui, C.-M. Lau (Eds.).
98. Sinn H.-W., Weichenrieder A.J. Foreign direct investment, political resentment and the privatisation process in Eastern Europe. Economic Policy 1997, 12(4):177-210.
99. Stevens G.V.G. Exchange rates and foreign direct investment: A note. International Finance Discussion Papers, April No. 444 1993, Board of Governors of the Feudal Reserve System, Washington.
100. Stiglitz J. Whither reform? Ten years of transition. Annual World Bank Conference on Development Economics 1999, World Bank, Washington D.C.
101. Stoian C. The benefits and limitations of European Union membership as a security mechanism. Journal of European Integration 2007, 29(2):189-207.
102. Stoian C., Filippaios F. Foreign direct investment in Central, Eastern and South-Eastern Europe: An eclectic approach to Greek investments. International Journal of Entrepreneurship and Innovation Management 2008, 8(5):542-564.
103. Stoian C., Filippaios F. Dunning's eclectic paradigm: A holistic, yet context specific framework for analysing the determinants of outward FDI. Evidence from international Greek investments. International Business Review 2008, 17(3):349-367.
104. Stoian C., Vickerman R. The interplay between security factors, European integration and security in Central and Eastern Europe. Journal of International Business and Economics 2006, 5(1):152-168.
105. Facilitating transition by internationalisation. Outward direct investment from central European countries in transition 2003, Ashgate Publishing, Aldershot. M. Svetlicic, M. Rojec (Eds.).
106. Tan D., Meyer K. Business groups' outward FDI: A managerial resources perspective. Journal of International Management 2010, 16(1):154-164.
107. Tolentino P. Technological innovation and third world multinationals 1993, Routledge, London.
108. Tolentino P.E. Home country macroeconomic factors and outward FDI of China and India. Journal of International Management 2010, 16(1):102-120.
109. UNCTAD (2011). World investment report: Non-equity modes of international production and development. Geneva: UNCTAD. Accessed 19.09.11. http://www.unctad-docs.org/files/UNCTAD-WIR2011-Chapter-I-en.pdf.
110. Varblene U., Roolaht T., Reiljan E., Ju{double acute}riado R. Estonian outward foreign direct investments. Working Paper Series, September 2001, Faculty of Economics and Business Administration, University of Tartu.
111. Voss H., Buckley P.J., Cross A.R. The impact of home country institutional effects on the internationalisation strategy of Chinese firms. Multinational Business Review 2010, 18(3):25-48.
112. Wang C., Hong J., Kafouros M., Boateng A. What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks. International Business Review 2012, 21(3):425-438.
113. Witt M.A., Lewin A.Y. Perspective: Outward foreign direct investment as escape response to home country institutional constraints. Journal of International Business Studies 2007, 38(4):579-594.
114. Wright M., Filatotchev I., Hoskisson R.E., Peng M.W. Strategy research in emerging economies: Challenging the conventional wisdom. Journal of Management Studies 2005, 42(1):1-33.
115. Wu F., Sia Y.H. China's rising investment in Southeast Asia: Trends and outlook. Journal of Asian Business 2002, 18(2):41-61.
116. Yamakawa Y., Peng M.W., Deeds D.L. What drives new ventures to internationalise from emerging to developed economies?. Entrepreneurship Theory and Practice 2008, 32(1):59-82.
117. Zhang X., Dally K. The determinants of China's outward foreign direct investment. Emerging Markets Review 2011, 12(4):389-398.
118. Zhao W., Liu L., Zhao T. The contribution of outward direct investment to productivity changes within China, 1991-2007. Journal of International Management 2010, 16(1):95-101.