Out of passivity: potential role of OFDI in IFDI-based learning trajectory
Author(s)Nam, Kyung-Min; Li, Xin
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This study discusses how outward foreign direct investment (FDI) can complement the inward FDI-based technological capability-building process, through an analysis of the Shanghai Automotive Industry Corporation case. When a firm is upgrading its technological capability, outward FDI can allow learners to have access to human-embedded skills and knowledge and other intellectual assets that are hardly accessible through the inward globalization strategy. Access to a wide range of external resources is a critical ingredient for improving technological capability, and it can also promote self-learning capability by encouraging subsequent learning-by-doing practices. Accordingly, outward FDI can augment “active” nature in the “passive” learning mode created by the inward globalization strategy.
DepartmentMassachusetts Institute of Technology. Department of Urban Studies and Planning; Massachusetts Institute of Technology. Joint Program on the Science & Policy of Global Change
Industrial and Corporate Change
Oxford University Press
Nam, K.-M., and X. Li. “Out of Passivity: Potential Role of OFDI in IFDI-Based Learning Trajectory.” Industrial and Corporate Change 22, no. 3 (September 10, 2012): 711–743.
Author's final manuscript