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The impact of domestic diversification and top management teams on the international diversification of Chinese firms

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  • Lu, Jiangyong
  • Liu, Xiaohui
  • Filatotchev, Igor
  • Wright, Mike

Abstract

Despite increasing research on outward foreign direct investment (OFDI) by firms from emerging economies, our understanding of the relationship between domestic operations and international diversification of these firms is still limited. Using a unique dataset of Chinese listed firms, we examine the impact of domestic diversification on their international diversification. We find that international diversification is positively affected by firms’ domestic industrial and domestic regional diversification. We also find that top management team (TMT)’s previous international experience strengthens the impact of domestic diversification on firms’ international diversification, whereas TMT's prior political connections weakens the impact of domestic diversification on international diversification.

Suggested Citation

  • Lu, Jiangyong & Liu, Xiaohui & Filatotchev, Igor & Wright, Mike, 2014. "The impact of domestic diversification and top management teams on the international diversification of Chinese firms," International Business Review, Elsevier, vol. 23(2), pages 455-467.
    • Handle: RePEc:eee:iburev:v:23:y:2014:i:2:p:455-467
    DOI: 10.1016/j.ibusrev.2013.07.002
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