ICC Advance Access originally published online on February 23, 2009
Industrial and Corporate Change 2009 18(2):249-267; doi:10.1093/icc/dtp004
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This article appears in the following Industrial and Corporate Change issue: Special Issue: The Internationalization of Chinese and Indian Firms-Trends, Motivations and Strategy [View the issue table of contents]
India's outward foreign direct investments in steel industry in a Chinese comparative perspective
Correspondence: Nagesh Kumar, Research and Information System for Developing Countries (RIS), Core IV B, India Habitat Centre, Lodhi Road, New Delhi 110003, India. email: nkumar{at}ris.org.in
Correspondence: Alka Chadha, Department of South Asian Studies, National University of Singapore, Singapore. email: alkachadha{at}gmail.com
Indian and Chinese enterprises have emerged as important outward investors in recent times with their involvement in a number of prominent Greenfield investments and acquisitions. The theory of international business posits that the ownership of some unique advantages having a revenue-generating potential abroad combined with the presence of internalization and locational advantages leads to outward foreign direct investment. Conventional multinational enterprises (MNEs) based in the industrialized countries have grown on the strength of ownership advantages derived from innovatory activity that is largely concentrated in these countries. It examines the case of the steel industry that has become an important sector of overseas activity for Chinese and Indian companies with a string of major acquisitions of foreign MNEs for acquiring footprints and natural resources in order to identify the sources of ownership advantages and strategies of outward investments from emerging countries.