The Magic of Diasporas: The Role of Overseas National Ownership in Outward FDI of Emerging Market Firms

Larissa Rabbiosi; Tamara Stucchi

The Magic of Diasporas: The Role of Overseas National Ownership in Outward FDI of Emerging Market Firms

Research output: Contribution to conference › Paper › Research › peer-review

Abstract

Overseas nationals are an important subset of investors in many emerging and less developed economies. Inspired by work on the relationship between ownership structure and internationalization, we seek to examine how the presence of overseas national shareholders can influence homeland firms' outward FDI. Drawing on risk-taking behavior theory and key concepts from the information-processing perspective, we hypothesize and empirically find that overseas national ownership is positively correlated with FDI and positively moderates the negative relationship between family ownership and FDI. We also compare the role of overseas national ownership with that of foreign corporate bodies. As expected, minority stake of foreign corporate bodies show a weaker influence in positively moderating the negative relationship between family ownership and FDI. We explain these relationships by overseas nationals' dual
orientation, i.e. their familiarity with both the domestic and the international contexts.

Original language	English
Publication date	2012
Number of pages	38
Publication status	Published - 2012
Event	The 3rd Copenhagen Conference on Emerging Multinationals: Outward Investment from Emerging Economies - Copenhagen Business School, Frederiksberg, Denmark Duration: 25 Oct 2012 → 26 Oct 2012 Conference number: 3 http://www.cbs.dk/Forskning/Konferencer/OFDI

Conference

Conference	The 3rd Copenhagen Conference on Emerging Multinationals
Number	3
Location	Copenhagen Business School
Country/Territory	Denmark
City	Frederiksberg
Period	25/10/2012 → 26/10/2012
Internet address	http://www.cbs.dk/Forskning/Konferencer/OFDI

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http://gdex.dk/ofdi12/Tamara%20Stuchi%20-%20the%20magic%20of%20diasporas_EM%20MNEs%20conference_LR%20TS.pdf

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Cite this

@conference{34ee3a0ee73143aabc99e0e3651b3fa8,

title = "The Magic of Diasporas: The Role of Overseas National Ownership in Outward FDI of Emerging Market Firms",

abstract = "Overseas nationals are an important subset of investors in many emerging and less developed economies. Inspired by work on the relationship between ownership structure and internationalization, we seek to examine how the presence of overseas national shareholders can influence homeland firms' outward FDI. Drawing on risk-taking behavior theory and key concepts from the information-processing perspective, we hypothesize and empirically find that overseas national ownership is positively correlated with FDI and positively moderates the negative relationship between family ownership and FDI. We also compare the role of overseas national ownership with that of foreign corporate bodies. As expected, minority stake of foreign corporate bodies show a weaker influence in positively moderating the negative relationship between family ownership and FDI. We explain these relationships by overseas nationals' dualorientation, i.e. their familiarity with both the domestic and the international contexts.",

author = "Larissa Rabbiosi and Tamara Stucchi",

year = "2012",

language = "English",

note = "The 3rd Copenhagen Conference on Emerging Multinationals ; Conference date: 25-10-2012 Through 26-10-2012",

url = "http://www.cbs.dk/Forskning/Konferencer/OFDI",

}

Rabbiosi, L & Stucchi, T 2012, 'The Magic of Diasporas: The Role of Overseas National Ownership in Outward FDI of Emerging Market Firms', Paper presented at The 3rd Copenhagen Conference on Emerging Multinationals, Frederiksberg, Denmark, 25/10/2012 - 26/10/2012. <http://gdex.dk/ofdi12/Tamara%20Stuchi%20-%20the%20magic%20of%20diasporas_EM%20MNEs%20conference_LR%20TS.pdf>

TY - CONF

T1 - The Magic of Diasporas

T2 - The 3rd Copenhagen Conference on Emerging Multinationals

AU - Rabbiosi, Larissa

AU - Stucchi, Tamara

N1 - Conference code: 3

PY - 2012

Y1 - 2012

N2 - Overseas nationals are an important subset of investors in many emerging and less developed economies. Inspired by work on the relationship between ownership structure and internationalization, we seek to examine how the presence of overseas national shareholders can influence homeland firms' outward FDI. Drawing on risk-taking behavior theory and key concepts from the information-processing perspective, we hypothesize and empirically find that overseas national ownership is positively correlated with FDI and positively moderates the negative relationship between family ownership and FDI. We also compare the role of overseas national ownership with that of foreign corporate bodies. As expected, minority stake of foreign corporate bodies show a weaker influence in positively moderating the negative relationship between family ownership and FDI. We explain these relationships by overseas nationals' dualorientation, i.e. their familiarity with both the domestic and the international contexts.

AB - Overseas nationals are an important subset of investors in many emerging and less developed economies. Inspired by work on the relationship between ownership structure and internationalization, we seek to examine how the presence of overseas national shareholders can influence homeland firms' outward FDI. Drawing on risk-taking behavior theory and key concepts from the information-processing perspective, we hypothesize and empirically find that overseas national ownership is positively correlated with FDI and positively moderates the negative relationship between family ownership and FDI. We also compare the role of overseas national ownership with that of foreign corporate bodies. As expected, minority stake of foreign corporate bodies show a weaker influence in positively moderating the negative relationship between family ownership and FDI. We explain these relationships by overseas nationals' dualorientation, i.e. their familiarity with both the domestic and the international contexts.

M3 - Paper

Y2 - 25 October 2012 through 26 October 2012

ER -