Direction of outward FDI of EMNEs: Evidence from the Indian pharmaceutical sector
Article first published online: 18 AUG 2011
© 2011 Wiley Periodicals, Inc.
Thunderbird International Business Review
Volume 53, Issue 5, pages 615–628, September/October 2011
How to Cite
Bhaumik, S. K. and Driffield, N. (2011), Direction of outward FDI of EMNEs: Evidence from the Indian pharmaceutical sector. Thunderbird Int'l Bus Rev, 53: 615–628. doi: 10.1002/tie.20438
- Issue published online: 18 AUG 2011
- Article first published online: 18 AUG 2011
This article seeks to add to the small but growing literature of emerging-market multinational enterprises (EMNEs). Using two linked large firm-level databases, it seeks to explore the determinants of outward investment of Indian pharmaceutical companies, distinguishing between developed- versus developing-country destinations. It specifically examines the impact of two firm-level characteristics that embody “non-OLI” [ownership, location, and internalization] firm-specific capabilities of EMNEs. The finding of this study is that family firms are keen on investing in other developing countries but much less so in developed countries. However, international linkages in the form of foreign investors offset this. © 2011 Wiley Periodicals, Inc.