Beggar-thy-neighbor trade protectionism has been proliferating in recent years,and whether it will stifle the enthusiasm for OFDI while seriously jeopardizing the import and export earnings of firms is a hot topic in international business research.The extant literature argues that trade barriers can both make outward investment more challenging and erode investment returns,as well as increase the willingness of firms to use OFDI as a substitute for importing and exporting.It highlights that the key to bridging the controversy lies in considering the type of OFDI and contextual variables.Using matched data on industry-level trade barriers and overseas R&D of Chinese high-tech manufacturing firms,it finds that trade barriers encourage firms to launch R&D abroad and enhance the scale and breadth of overseas R&D.The import and export substitution effect,in which firms rely on overseas R&D as a substitute for technology acquisition and market expansion,is an underlying mechanism by which trade barriers affect overseas R&D.It is further found that political connection and overseas working experience of senior executives significantly reinforce the positive impact of trade barriers on overseas R&D,in spite of the fact that this moderating effect holds only when there is a high level of political consensus between the home country and the host country of overseas R&D.It adds to the body of knowledge on the theory of international business strategy and the study of how techno-geopolitical risks affect firms' strategic choices and behaviors.It also sheds light on how firms in adversity address the impact of trade barriers.
overseas R&Dtrade barrierspolitical connectionoverseas working experienceimport and export substitution effect
万方数据
维普
