The survival of outward investments from China and India: Is there a North-South divide?
The survival of outward investments from China and India: Is there a North-South divide?
Multinationals from China and India courted the economies of both the North and the South and they had different advantages in doing so. After more than two decades of successful internationalization, can the survival of Chinese and Indian investments reveal the factors that are associated with the success of EMNC investments in the North and the South? This is the main question we explore in this paper. We find that there is a North-South divide in the survival of Chinese and Indian outward investments. Investments in the North are subject to more intense competitive pressure due to the stronger technological and managerial abilities of domestic firms and survival is markedly weaker there. In Southern locations, where Chinese and Indian firms enjoy competitive advantages and industrial leadership in several areas, they also have better rates of survival. Apart from highlighting the role of relative (to host country firms) firm-specific advantages in explaining survival in the North and South, we also find that a larger diaspora in Southern locations is associated with greater survival.
Athreye, Suma
beb4c5e4-b691-42e6-bf1d-5e457ab070df
Saeed, Abubakr
9b178710-8c61-4298-809a-0d3f0b674ab9
Baloch, Muhammad Saad
0baa859e-4d0d-4dda-8433-d813655c88b5
20 October 2022
Athreye, Suma
beb4c5e4-b691-42e6-bf1d-5e457ab070df
Saeed, Abubakr
9b178710-8c61-4298-809a-0d3f0b674ab9
Baloch, Muhammad Saad
0baa859e-4d0d-4dda-8433-d813655c88b5
Athreye, Suma, Saeed, Abubakr and Baloch, Muhammad Saad
(2022)
The survival of outward investments from China and India: Is there a North-South divide?
Journal of Business Research, 154, [113374].
(doi:10.1016/j.jbusres.2022.113374).
Abstract
Multinationals from China and India courted the economies of both the North and the South and they had different advantages in doing so. After more than two decades of successful internationalization, can the survival of Chinese and Indian investments reveal the factors that are associated with the success of EMNC investments in the North and the South? This is the main question we explore in this paper. We find that there is a North-South divide in the survival of Chinese and Indian outward investments. Investments in the North are subject to more intense competitive pressure due to the stronger technological and managerial abilities of domestic firms and survival is markedly weaker there. In Southern locations, where Chinese and Indian firms enjoy competitive advantages and industrial leadership in several areas, they also have better rates of survival. Apart from highlighting the role of relative (to host country firms) firm-specific advantages in explaining survival in the North and South, we also find that a larger diaspora in Southern locations is associated with greater survival.
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Accepted/In Press date: 9 October 2022
e-pub ahead of print date: 20 October 2022
Published date: 20 October 2022
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Local EPrints ID: 474824
URI: http://eprints.soton.ac.uk/id/eprint/474824
ISSN: 0148-2963
PURE UUID: 77bc4bdc-0d81-4454-89bd-f4c630dabc29
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Date deposited: 03 Mar 2023 17:39
Last modified: 17 Mar 2024 07:39
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Author:
Suma Athreye
Author:
Abubakr Saeed
Author:
Muhammad Saad Baloch
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