NDLI: Learning from Others: the Impact of Vicarious Experience on the Psychic Distance and FDI Relationship

Content Provider	Springer Nature Link
Author	Jiménez, Alfredo Fuente, David
Copyright Year	2016
Abstract	This study analyzes the potential moderating effect of vicarious experience on the negative influence of psychic distance stimuli on foreign direct investment. Multinational enterprises can learn from the experience of other firms and benefit from higher opportunities to identify best practices and mistakes, acquire knowledge and develop capabilities, establish interactions and collaborations with suitable partners and gain legitimacy to overcome points of resistance. We analyze a sample of 164 Spanish multinational enterprises and show that a larger number of companies from the same home country in the host country positively moderate the negative influence of a greater psychic distance in the education, industrial development, democracy and social system stimuli. However, this moderating effect does not take place in the case of the language and religion stimuli, highlighting the importance of a fine-grain individual analysis of all distance dimensions, instead of relying on a single aggregated measure. Finally, our results show that total but also same- and different-sector vicarious experience exercise this moderating effect and that, contrary to previous empirical studies, no evidence of a substitution effect is found.
Starting Page	633
Ending Page	664
Page Count	32
File Format	PDF
ISSN	09388249
Journal	Management International Review
Volume Number	56
Issue Number	5
e-ISSN	18618901
Language	English
Publisher	Springer Berlin Heidelberg
Publisher Date	2016-01-26
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Vicarious experience Psychic distance Foreign direct investment Multinational enterprise Business and Management Organization Emerging Markets/Globalization Business Strategy/Leadership Operations Management
Content Type	Text
Resource Type	Article
Subject	Business and International Management Strategy and Management

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
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