Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China

Ruey Jer Bryan Jean; Danchi Tan; Rudolf R. Sinkovics

doi:10.1016/j.ibusrev.2011.02.012

Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China

Ruey Jer Bryan Jean, Danchi Tan, Rudolf R. Sinkovics

PMO Comparative & International Business

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Abstract

This paper examines ethnic ties and their impact on FDI location choice and firm performance. Drawing on social network theory and using data from 88 Taiwanese business groups, the study tests the impact of ethnic ties on firm FDI location choice and performance outcomes in China. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. In contrast to our expectations however, ethnic ties do not help to improve firm performance in China. Implications of these results are discussed in view of existing literature and future research opportunities are delineated. © 2011.

Original language	English
Pages (from-to)	627-635
Number of pages	8
Journal	International Business Review
Volume	20
Issue number	6
DOIs	https://doi.org/10.1016/j.ibusrev.2011.02.012
Publication status	Published - Dec 2011

Keywords

China
Ethnic
FDI
Market entry
Social ties

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.ibusrev.2011.02.012

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http://dx.doi.org/10.1016/j.ibusrev.2011.02.012

Cite this

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title = "Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China",

abstract = "This paper examines ethnic ties and their impact on FDI location choice and firm performance. Drawing on social network theory and using data from 88 Taiwanese business groups, the study tests the impact of ethnic ties on firm FDI location choice and performance outcomes in China. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. In contrast to our expectations however, ethnic ties do not help to improve firm performance in China. Implications of these results are discussed in view of existing literature and future research opportunities are delineated. {\textcopyright} 2011.",

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note = "Highlights: We examines ethnic ties and their impact on FDI location choice and firm performance. We draw on social network theory and use data from 88 Taiwanese business groups. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. However, ethnic ties do not help to improve firm performance in China.",

year = "2011",

month = dec,

doi = "10.1016/j.ibusrev.2011.02.012",

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AU - Sinkovics, Rudolf R.

N1 - Highlights: We examines ethnic ties and their impact on FDI location choice and firm performance. We draw on social network theory and use data from 88 Taiwanese business groups. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. However, ethnic ties do not help to improve firm performance in China.

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N2 - This paper examines ethnic ties and their impact on FDI location choice and firm performance. Drawing on social network theory and using data from 88 Taiwanese business groups, the study tests the impact of ethnic ties on firm FDI location choice and performance outcomes in China. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. In contrast to our expectations however, ethnic ties do not help to improve firm performance in China. Implications of these results are discussed in view of existing literature and future research opportunities are delineated. © 2011.

AB - This paper examines ethnic ties and their impact on FDI location choice and firm performance. Drawing on social network theory and using data from 88 Taiwanese business groups, the study tests the impact of ethnic ties on firm FDI location choice and performance outcomes in China. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. In contrast to our expectations however, ethnic ties do not help to improve firm performance in China. Implications of these results are discussed in view of existing literature and future research opportunities are delineated. © 2011.

KW - China

KW - Ethnic

KW - FDI

KW - Market entry

KW - Social ties

U2 - 10.1016/j.ibusrev.2011.02.012

DO - 10.1016/j.ibusrev.2011.02.012

M3 - Article

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VL - 20

SP - 627

EP - 635

JO - International Business Review

JF - International Business Review

IS - 6

ER -

Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China

Abstract

Keywords

UN SDGs

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