Foreign Direct Investment Communities and the Legitimation of Wholly-Owned Foreign Subsidiaries in China

Jiatao Li, Jing Yu Yang

Research output: Chapter in Book/Conference proceedingBook Chapterpeer-review

Abstract

In this chapter, data on the establishment of wholly-owned foreign subsidiaries in China are used to study to what extent the prior existence of wholly-owned subsidiaries in a host country has the effect of legitimizing this form of subsidiary. The legitimization process is explored applying institutional and ecological perspectives at the population level, rather than as a firm-level phenomenon. The results will show that the establishment of wholly-owned subsidiaries was related to the prior existence of both wholly-owned subsidiaries and joint ventures in China, and that this legitimizing effect spilled over from foreign investors in other industries and from other home countries.

Original languageEnglish
Title of host publicationPalgrave Macmillan Asian Business Series
PublisherPalgrave Macmillan
Pages215-233
Number of pages19
DOIs
Publication statusPublished - 2006
Externally publishedYes

Publication series

NamePalgrave Macmillan Asian Business Series
ISSN (Print)2661-8435
ISSN (Electronic)2661-8443

Keywords

  • Entry Mode
  • Foreign Direct Investment
  • Foreign Investor
  • Home Country
  • Host Country

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Organizational Behavior and Human Resource Management

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