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Previous studies emphasise that the foreign direct investment (FDI) strategies of firms from newly industrialised economies (NIEs) are different from the FDI strategies of firms from developed economies. It has also been shown that NIE firms are often controlled by founding families who make key strategic decisions, and that they rely heavily on network linkages when developing their FDI strategies. What is less clear, however, is how the corporate governance factors in NIEs, the risk preferences of the main shareholder constituencies, and the network-based business culture affect the decision to undertake FDI in emerging markets. This paper explores the entry mode and location choices of firms from an Asian NIE (Taiwan) in an emerging market (the People's Republic of China). It shows that the choice of equity stake in an affiliate depends upon the extent of family and institutional share ownerships in the parent company. High-commitment entry is found to be positively associated with the affiliate being located in areas with strong economic, cultural and historic links with the parent company. Furthermore, the entry mode and location decisions appear to be interrelated, with the parent's equity stake in the affiliate depending inter alia upon the location within China, and the favoured location depending inter alia upon the equity stake. [ABSTRACT FROM AUTHOR]

Organizational learning theory has been extensively employed in many subfields of management studies. While scholars have demonstrated that international experience facilitates decisions on foreign direct investment, few studies have explored the influences of various experiences from multiple sources within and across organizational boundaries. Specifically, this study aims to examine how intra/inter-organizational experiences of internationalization affect the likelihood that a member firm in a business group will conduct subsequent FDI in a transitional economy and how managers weigh a variety of experiences that come from multiple sources at different levels. By analyzing the FDI data of Taiwanese electronics firms in China from 1993 to 2004, we confirm that both the experiences shared among peer subunits within a business group and the spillover experiences from industrial competitors and collaborators increase the likelihood that a focal firm will make subsequent investments in a transitional economy. However, when presented with various experiences, only country-specific experiences and the experiences of horizontal peer subunits within a business group maintain positive influences on focal firms' subsequent entry decisions. In contrast, managers tend to ignore international experiences that are dissipated at the industry level. The findings deepen the academic understanding of intra-and inter-organizational learning behavior regarding the international expansion of business groups. [ABSTRACT FROM AUTHOR]

We examine the extent to which outward FDI from Taiwan to mainland China has contributed to the rising unemployment rate in Taiwan. Further, it examines whether outward FDI has contributed to productivity growth in Taiwan, and the importance of linkages between sectors in determining these effects. We provide strong evidence that Taiwanese firms have increased their investments in China, and that this has lead to a reduction in employment in such sectors at home. Further, we show that these effects are also translated up the supply chain, such that outward FDI also leads to a reduction in employment upstream in the supply chain. [ABSTRACT FROM AUTHOR]