Rapid FDI of emerging-market firms: foreign participation and leapfrogging in the establishment chain

This research explores the enablers of emerging-market firms (EMFs) leapfrogging in internationalization process. Although many studies on rapid focus exporting activities, we expand concept to a higher-commitment entry mode: foreign direct investment (FDI). In addition, investigate role an understudied force, multinational enterprises (MNEs) emerging markets, enabling EMFs. Our hypotheses are tested using 1,612 first-time outward FDI projects from China between 2000 and 2014. The largely supported results suggest that minority ownership colocation with MNEs allow EMFs leapfrog certain stages establishment chain. findings offer alternative explanations, besides government steward logic, EMFs’ international expansion contribute understanding, policy standpoint, encouraging foreign-local partnerships is conducive host-country industrial upgrading.