Abstract:Since the early 21st century, the foreign investment from developing countries has increased rapidly and a number of excellent transnational corporations have emerged. However, what are the sources of OFDI capabilities of MNEs from developing countries? In this paper, we investigate the capability building process of Chinese auto company within a comprehensive and dynamic framework. We find the development of OFDI capabilities involves a systematical process. As a latecomer, the introduction of external resource is involved firstly for the development. It will build up the local industrial condition. OFDI is ultimately formed by firms who have firm-specific advantages and benefit from local industrial condition as well as external opportunities with the support of government.

Authors:Chen Taotao, Gu Lingjun

AIB 2019 Annual Meeting, 2019.