Out of Passivity: Potential Role of OFDI in IFDI-based Learning Trajectory

Journal Article
 • China Energy & Climate Project
Out of Passivity: Potential Role of OFDI in IFDI-based Learning Trajectory
Nam, K.-M., and X. Li (2013)
Industrial and Corporate Change

Abstract/Summary:

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.

© 2012 Authors

Citation:

Nam, K.-M., and X. Li (2013): Out of Passivity: Potential Role of OFDI in IFDI-based Learning Trajectory. Industrial and Corporate Change. (http://dx.doi.org/10.1093/icc/dts031)
  • Journal Article
China Project
Out of Passivity: Potential Role of OFDI in IFDI-based Learning Trajectory

Nam, K.-M., and X. Li

Abstract/Summary: 

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.

© 2012 Authors