Open AccessCorporate political action and international joint venture formation in overseas engineering construction
Author(s) -
Xiaodong Li,
Haixu Song,
Liao Jiang
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/688/5/055059
Subject(s) - international joint venture , politics , business , foreign direct investment , general partnership , joint venture , international business , government (linguistics) , political risk , action (physics) , market economy , marketing , economics , finance , management , commerce , political science , linguistics , philosophy , physics , law , macroeconomics , quantum mechanics
The purpose of this study is to identify different types of corporate political actions (CPAs) and investigate whether foreign firms are encouraged to form international joint ventures (IJVs) with local partners engaged in CPAs in overseas engineering construction. More specifically, this study examines the circumstances under which foreign firms are more likely to pursue partnership with local firms taking private CPAs than those with collective CPAs. Two sets of moderating conditions are tested. The first set of factors explores how institutional development affects strategic resources achievable through different types of political actions, and the second set of factors relates to industry policies issued by the government to regulate foreign investment, which may pose a challenge to foreign firms.