School of Management, Marketing and International Business, College of Business and Economics, Australian National University, Canberra, ACT 0200, Australia

Correspondence: Lin Cui, E-mail: lin.cui@anu.edu.au

Received 26 September 2007; Revised 15 December 2008; Accepted 16 January 2009.

Abstract

This paper, based on an examination of existing literature on foreign direct investment (FDI) ownership decisions of multinational corporations (MNCs) and findings from a qualitative study on Chinese outward investing firms, develops an integrated conceptual framework integrating the strategic behaviour approach, resource-based view, transaction cost approach and institution-based view. It reflects differences between Chinese firms and developed-country MNCs in FDI ownership decisions, with Chinese firms putting stronger emphasis on strategic intent than strategic fit, enjoying government support that eases their assets constraints, and receiving institutional influences not only from the host country, but also from their own government. Altogether nine factors are specified and a research agenda is set up with propositions.