Journal article

Experience and FDI Risk-taking: A Microfoundational Reconceptualization

Peter J Buckley, Liang Chen, L Jeremy Clegg, Hinrich Voss

JOURNAL OF INTERNATIONAL MANAGEMENT | ELSEVIER | Published : 2016

Abstract

Studies of how firms respond to host country risk have assigned explanatory primacy to organizational capability and managerial risk preference. The organization-level account is built on the premise that capability is a prerequisite for risk-taking while the individual-level account focuses on the managers' intrinsic behavioral attitude. Without integrating one with the other, the former is open to many alternative explanations while the latter remains only a source of heterogeneity. We propose that employing the microfoundations approach can address the limitations of each account and yield a fuller understanding of FDI risk-taking. Drawing upon behavioral decision theory and the concept o..

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University of Melbourne Researchers