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...

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Published inJournal of business research Vol. 154; p. 113374
Main Authors Athreye, Suma, Saeed, Abubakr, Saad Baloch, Muhammad
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.01.2023
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ISSN0148-2963
DOI10.1016/j.jbusres.2022.113374

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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.
AbstractList 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.
ArticleNumber 113374
Author Saad Baloch, Muhammad
Athreye, Suma
Saeed, Abubakr
Author_xml – sequence: 1
  givenname: Suma
  surname: Athreye
  fullname: Athreye, Suma
  email: suma.athreye@essex.ac.uk
  organization: University of Essex, Essex Business School, Southend-on-Sea, SS1 1LW, United Kingdom
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  givenname: Abubakr
  surname: Saeed
  fullname: Saeed, Abubakr
  email: Abubakr.saeed@comsats.edu.pk
  organization: Department of Management Sciences, COMSATS University, Islamabad, Pakistan
– sequence: 3
  givenname: Muhammad
  surname: Saad Baloch
  fullname: Saad Baloch, Muhammad
  email: msaad.baloch@gmail.com
  organization: Rabat Business School, International University of Rabat, Parc Technopolis, Rabat-Shore 11100, Morocco
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Keywords Firm-specific advantages
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Snippet 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...
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SubjectTerms Emerging markets enterprises
Firm-specific advantages
North and South
Outward investment
Title The survival of outward investments from China and India: Is there a North-South divide?
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