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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

Research output: Contribution to journalArticlepeer-review

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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 languageEnglish
Pages (from-to)627-635
Number of pages8
JournalInternational Business Review
Volume20
Issue number6
DOIs
Publication statusPublished - Dec 2011

UN SDGs

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

  1. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Keywords

  • China
  • Ethnic
  • FDI
  • Market entry
  • Social ties

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