The Role of Inward FDI and Family Firm Heterogeneity on Foreign Location Choice: Evidence from India
Document Type
Article
Publication Date
4-1-2024
Publication Title
Management International Review
Keywords
family firm, inward FDI, outward FDI, location choice, ownership, India
Abstract
The purpose of this study is to examine the internal and external factors that influence the location choice decision of family firms. Drawing on two streams of literature—family firm and international business—we investigate the role that inward FDI (IFDI) and firm’s heterogeneity (ownership structure and management type) play in the location choice of family firms. Our analysis of a large sample of family firms (N = 278) from India suggests that IFDI is positively associated with a greater likelihood of advanced economy location choice compared to the choice of emerging economies. Our results also reveal that the relationship between IFDI and advanced economy location choice is stronger for family-controlled firms than for family-influenced firms. In addition, results demonstrate that within family-controlled firms, the above positive relationship is stronger for firms that are professionally-managed than for firms that are family-managed. The study concludes by explaining the theoretical and managerial implications of the findings and highlighting avenues of future research.
DOI
10.1007/s11575-024-00535-7
Recommended Citation
Mondal, Arindam and Lahiri, Somnath, "The Role of Inward FDI and Family Firm Heterogeneity on Foreign Location Choice: Evidence from India" (2024). Faculty Publications-- Management. 9.
https://ir.library.illinoisstate.edu/fpmqm/9
Comments
This is the accepted manuscript of an article published in Management International Review 64 (2024): 245–278. https://doi.org/10.1007/s11575-024-00535-7.