Economic distance and the survival of foreign direct investments

• 成果类型: Article
• 署名作者: Tsang, Eric W. K.; Yip, Paul S. L.
• 署名单位: University of Texas System; University of Texas Dallas; Nanyang Technological University
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/20159917
• 发表日期: 2007
• 页码: 1156-1168
• 关键词: INTERNATIONAL EXPANSION; location choice; KNOWLEDGE; japanese; acquisitions; performance; strategy; FIRMS; multinationals; ORGANIZATIONS

摘要

Taking a theoretical perspective contrasting resource exploitation with resource exploration, we argue that foreign direct investments' (FDIs') hazard rates are lower in countries that are either more or less developed than a home country than are FDIs' hazard rates in countries of similar economic development. We obtained strong supporting evidence in a sample of FDIs made by Singapore firms. Further, using the reasoning of strategic coalignment, we argue that acquisitions have lower hazard rates than greenfield investments in more developed countries and vice versa in less developed countries. We found supporting evidence for the former argument but not for the latter.