Title: Host and home country co-determinants of foreign establishment modes: evidence from the Chinese natural resource industries

Authors: Jing Su; Ping Lv; Peter Gammeltoft; Ilan Alon

Addresses: School of Economics and Management, University of Chinese Academy of Sciences, Beijing, China; Economics School of Louvain, Université catholique de Louvain, Louvain-la-Neuve, Brussles, Mons, Belgium ' School of Economics and Management, University of Chinese Academy of Sciences, Beijing, China ' Department of International Economics, Government and Business, Copenhagen Business School, Frederiksberg, Copenhagen, Denmark ' School of Business and Law, University of Agder, Kristiansand, Grimstad, Norway

Abstract: We analyse the impact of home and host country co-determinants on the foreign establishment modes of Chinese multinational enterprises in natural resource industries. Using data from the Chinese Ministry of Commerce, we document that host country factors have a direct effect on establishment modes, whereas home country factors, particularly those related to the province in which the company is located, have an indirect effect through their impact on the firm's capabilities. While companies are more likely to pursue acquisitions in host countries with a rule-based governance environment, this relationship weakens when either the resource endowments of the home province increase, or the business environment of the home province improves.

Keywords: foreign establishment modes; home country; host country; natural resource industries; hierarchical linear modelling.

DOI: 10.1504/EJIM.2025.143276

European Journal of International Management, 2025 Vol.25 No.1, pp.138 - 161

Received: 20 Oct 2020
Accepted: 23 Jun 2021
Published online: 12 Dec 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article