The role of reference groups in international investment decisions by firms from emerging economies

Jiatao Li, Fiona Kun Yao

Research output: Contribution to journalArticle

Abstract

Investments in China by firms from emerging economies were studied to determine how various reference groups affect their foreign market entry behavior. Imitation was shown to be an important factor, but the mechanism seems to vary depending on the institutional environments in the host and the home market. Firms from emerging economies seem to rely on copying the entry decisions of peers from their home country, especially in locations where the risk of government meddling is greatest. The example of firms from developed economies was found to be less influential.

Original languageEnglish (US)
Pages (from-to)143-153
Number of pages11
JournalJournal of International Management
Volume16
Issue number2
DOIs
StatePublished - Jun 1 2010
Externally publishedYes

Keywords

  • China
  • Emerging economies
  • Reference groups

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Strategy and Management

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