Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors

Bhaumik, Sumon K., Driffield, Nigel L. and Pal, Sarmistha (2010). Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors. Journal of International Business Studies, 41 (3), pp. 437-450.

Abstract

This paper examines the impact of ownership structures of emerging-market firms, which are shaped by local institutions, on the decision of these firms to undertake outward FDI. Our results suggest that family firms and firms with concentrated ownerships (both ubiquitous in emerging markets) are less likely to invest overseas, and that strategic equity holding by foreign investors facilitates outward FDI. We conclude that organisational forms such as family firms, which are optimal outcomes of institutions prevailing in emerging markets, may be suboptimal in a changing business environment in which outward FDI is necessary for access to resources and markets.

Publication DOI: https://doi.org/10.1057/jibs.2009.52
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School > Aston India Foundation for Applied Research
Aston Business School
Additional Information: This is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version Bhaumik, Sumon K.; Driffield, Nigel L. and Pal, Sarmistha (2010) Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors. Journal of International Business Studies, 41 (3). pp. 437-450. ISSN 0047-2506 is available online at: http://www.palgrave-journals.com/jibs/journal/v41/n3/abs/jibs200952a.html
Uncontrolled Keywords: institutions,ownership/control structures,family firms,foreign investors,outward FDI,emerging-market MNEs,Business and International Management,Business, Management and Accounting(all),Economics and Econometrics,Management of Technology and Innovation,Strategy and Management
Full Text Link: http://www.palg ... ibs200952a.html
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2010-04
Authors: Bhaumik, Sumon K.
Driffield, Nigel L.
Pal, Sarmistha

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