Firm age and Chinese firms’ OFDI in developing and developed countries: the moderating roles of industry munificence and state ownership

Abstract

Purpose

Applying the internationalization process model (IPM) and the strategic fit perspective, this research aims to test the effects of firm age on Chinese firms’ outward foreign direct investment (OFDI) in developing and developed countries.

Design/methodology/approach

Using data on some Chinese firms, this study applied the zero-inflated negative binomial model and Heckman two-stage model to do the analyses.

Findings

This research found that firm age has different effects on Chinese firms’ OFDI in developed and developing countries. State ownership and industry munificence independently and jointly can moderate these effects.

Originality/value

This study contributes to the IPM and solves the theoretical conflict about the firm age–OFDI relationship.

Citation

Xie, Q. (2023), "Firm age and Chinese firms’ OFDI in developing and developed countries: the moderating roles of industry munificence and state ownership", Chinese Management Studies, Vol. 17 No. 6, pp. 1276-1301. https://doi.org/10.1108/CMS-04-2022-0155