Institutional Change, Strategic Orientation and Dynamic Capabilities: A Multilevel Perspective on Chinese Outward FDI

Ming Hua Li

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review


    The phenomenon of systematic institutional change in many developing countries can produce enduring transformations in the strategic orientation and organization of domestic firms. Such changes may impact the formation of their dynamic capabilities and adaptive learning which can translate into visible differences in their internationalization strategies and pathways. Using China as an illustrative example of a transitioning economy experiencing upsurges in outward FDI, this study develops a theoretical framework to explain how institutional transformation at various levels of government led to different configurations of firm resources and dynamic capabilities for central and local Chinese SOEs. Specifically, propositions from this framework explore how such
    unique variations in firm-level attributes may lead to differences in outward foreign investment behavior. Combining insights from several research streams including the resource-based view, institutional and organizational theory frameworks, as well as the dynamic capabilities perspective, we suggest that institutional change in China serves a formative role in the development of firm strategic orientation and dynamic capabilities leading to different internationalization patterns for central and local SOEs.
    Original languageEnglish
    Title of host publicationProceedings of the 54rd Annual Meeting of the Academy of International Business
    EditorsSusan Feinberg, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2012
    Publication statusPublished - 2012
    EventAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, United States
    Duration: 30 Jun 20123 Jul 2012
    Conference number: 54


    ConferenceAIB 2012 Annual Meeting
    LocationGeorge Washington University and University of Maryland
    Country/TerritoryUnited States
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings

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