Research Article

Knowledge Seeking and Outward FDI of Emerging Market Firms: The Moderating Effect of Inward FDI

  1. Jing Li1,*,
  2. Yong Li2,
  3. Daniel Shapiro3

Article first published online: 8 NOV 2012

DOI: 10.1111/j.2042-5805.2012.01042.x

Issue

Global Strategy Journal

Global Strategy Journal

Volume 2, Issue 4, pages 277–295, November 2012

Additional Information

How to Cite

Li, J., Li, Y. and Shapiro, D. (2012), Knowledge Seeking and Outward FDI of Emerging Market Firms: The Moderating Effect of Inward FDI. Global Strategy Journal, 2: 277–295. doi: 10.1111/j.2042-5805.2012.01042.x

Author Information

  1. 1

    Beedie School of Business, Simon Fraser University, Burnaby, British Columbia, Canada

  2. 2

    School of Management, State University of New York at Buffalo, Amherst, New York, U.S.A.

  3. 3

    Beedie School of Business, Simon Fraser University, Vancouver, British Columbia, Canada

*Correspondence to: Jing Li, Simon Fraser University, Beedie School of Business, 8888 University Dr., Burnaby, British Columbia V5A 1S6 , Canada. Email: jingli@sfu.ca

Publication History

  1. Issue published online: 8 NOV 2012
  2. Article first published online: 8 NOV 2012

Funded by

  • Social Sciences and Humanities Research Council of Canada

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Keywords:

  • Keywords: emerging market MNEs;
  • knowledge seeking;
  • comparative technology advantage;
  • outward FDI;
  • inward FDI;
  • China

This study examines whether a host country's industry-specific technology advantage increases the propensity of emerging market multinational enterprises (EMNEs) to invest in the host country. The study further explores whether inward FDI in EMNEs' home markets, by generating knowledge spillovers in the relevant industries, decreases EMNEs' propensity to invest overseas for knowledge seeking. We test our arguments using a longitudinal data set of the overseas investment activities of Chinese manufacturing firms. We find support for our hypotheses after controlling for other important outward FDI motives. We discuss the implications of our results for research and practice.

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