Host and home country co-determinants of foreign establishment modes: evidence from the Chinese natural resource industries
(2025) European Journal of International Management — Vol. 25, n° 1, p. 138-161 (2025)
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- Abstract
- We analyse the impact of home and host country co-determinants on the foreign establishment modes of Chinese multinational enterprises in natural resource industries. Using data from the Chinese Ministry of Commerce, we document that host country factors have a direct effect on establishment modes, whereas home country factors, particularly those related to the province in which the company is located, have an indirect effect through their impact on the firm's capabilities. While companies are more likely to pursue acquisitions in host countries with a rule-based governance environment, this relationship weakens when either the resource endowments of the home province increase, or the business environment of the home province improves.
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Su, J., Lv, P., Gammeltoft, P., & Alon, I. (2025). Host and home country co-determinants of foreign establishment modes: evidence from the Chinese natural resource industries. European Journal of International Management, 25(1), 138-161. https://doi.org/10.1504/ejim.2025.143276 (Original work published 2025)