The Performance of Chinese Outward FDI: Effects of past experience, learning capabilities and overall motivation
Authors: Marjorie Lyles, Dan Li (firstname.lastname@example.org), and Haifeng Yan (email@example.com)
Existing models of internationalization do not fully explain the international venturing of emerging economy private ventures (Oviatt & McDougall, 1994; Zahra, 2003). Using survey data of midsized private Chinese firms that have outward foreign direct investments (OFDI), this paper examines how international experiences, learning capabilities and overall motivations influence the OFDI performance. We hypothesize that each variable will positively affect the OFDI. We find that neither the founder’s nor the firm’s prior international experience has a direct impact on performance. While a direct effect of the potential absorptive capacity on performance is observed originally, we find that learning outcomes fully mediates the relationship. The firm’s overall motivation has a direct effect on performance and it is partially mediated by learning outcomes from its host country.
Professor Lyles has consulted with many government agencies and firms interested in organizational learning, foreign direct investment, joint ventures, technology development, and higher education. Her writings center on organizational learning, international strategies and cooperative alliances, and technology development particularly in emerging economies. She studies the performance of foreign direct investment projects and the utilization of joint ventures as a form of business development and entrepreneurship in transitional and evolving economies.
She has presented and authored over 100 articles on strategic management. Her research has appeared in such journals as Administrative Science Quarterly, Academy of Management Review, Academy of Management Journal, Strategic Management Journal, Journal of International Business Studies, Long Range Planning, and the Journal of Management Studies. On her work on joint ventures, she has given presentations in numerous countries. She served on the editorial boards of the Journal of International Business Studies, Academy of Management Review, Academy of Management Journal, and Journal of Management. She is coeditor of the Blackwell Handbook of Organizational Learning, 2003. She is listed in Outstanding Young Women in America and Who's Who in Finance and Industry.