AIB 2012 Conference Proceedings - Academy of International ...

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different dimensions of institutional distance (administrative, cultural, demographic, economic, knowledge and
political) have different kinds of effects on the three types of FDI. We also examine firm-specific moderator
variables. We propose that ownership concentration, state ownership, intangible assets, and prior experience
moderate the impact of institutional distance on FDI. We test these hypotheses in the context of Chinese listed
firms investing abroad during the 1991-2007 period, finding support for most of the predictions concerning
market-seeking FDI and some of those concerning efficiency and asset-seeking investments. (For more
information, please contact: Nan Zhou, Moscow School of Management SKOLKOVO, China: nzhou@skolkovo.ru)
Chinese Telecommunication MNEs in Africa: Effects of Host Countries Economic Environment on IMNEs'
Location choice
Yuxuan Tang, University of Reading
Robert Pearce, University of Reading
Christine Phillips, University of Reading
Chinese infrastructure investment is always considered as the part of China's ODA to Africa. However, the
entities of this investment—the IMNEs (Infrastructure Multinational Enterprises) also have to consider host
countries environment because of firms' mixed motivation. This paper, based on two stream of IB theory:
institution-based view and location choice on host country, explains the cross-country differences on
macroeconomic and institutional environment affect strategic behaviour of Chinese Infrastructure MNEs in Africa
and examines why macroeconomic and institutional environments still matter and how host countries
environments differentiate individual Chinese firm's location choice. Owing to the particularity of IMNEs in
telecommunication sector, the paper is going to pick two major Chinese players as cases (Huawei Technologies
and ZTE). The empirical study of this argument is tested by Panel probit model, using data of two companies'
location choice in 40 African countries over 8 years. (For more information, please contact: Yuxuan Tang,
University of Reading, United Kingdom: yuxuan.tang@pgr.reading.ac.uk)
Understanding Multinational's Location Choice Decisions: A Resource Based View Perspective
Fragkiskos Filippaios, University of Kent
Fatima Annan-Diab, Kingston University London
Understanding the nature of multinational investment decisions, both from a company and country perspective,
is an important issue for economic growth and development. The question of where to invest, and which
resources and core competences to align with which location advantages, is crucial for the creation of a firm's
sustainable competitive advantage and the country's wealth and prosperity. Based on the notion that the way a
firm utilise its resources leads to the development of its core competences, these core competences in turn
influence the choice of the firm's strategies and investment decisions. Firms must examine and understand the
resources and capabilities that enable them to generate above-normal rates of return and thus compete in the
best possible way in dynamic global markets. This research adopts the resource-based view, with relevant key
insights being drawn from international business theory to capture multinational foreign direct investment
motivations and explain multinationals' investment decisions. To achieve this multinational investment
motivations and their underlying resources and core competences are presented in a set of propositions
developed from both the strategic management and the international business literatures and embracing the
firm and country perspective. An empirical application to Ireland then allows exploring the validity of our
propositions and discussing effective recommendations for multinational enterprises and suitable policy
implications for host countries. (For more information, please contact: Fragkiskos Filippaios, University of Kent,
United Kingdom: f.filippaios@kent.ac.uk)
Cause or Coincidence Market Entry among Foreign Banks in Tokyo, 1907-2005
Joeri van Hugten, Tilburg University
Jeroen G. Kuilman, Tilburg University
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