Paradoxical FDI strategies, subsidiary financial performance, and managerial global mindset

IF 4.2 2区管理学 Q1 MANAGEMENT

Journal of International Management Pub Date : 2026-03-01 Epub Date: 2026-02-21 DOI:10.1016/j.intman.2026.101348

Fuming Jiang , Subramaniam Ananthram , Mike W. Peng

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Abstract

This paper investigates how subsidiary managers' global mindset interacts with paradoxical foreign direct investment (FDI) strategies—exploratory FDI versus exploitative FDI—and MNE subsidiary financial performance. From an integrative lens of paradox theory, we argue that subsidiary managers' global mindset —a paradoxical cognitive capability— helps transcend the paradoxical FDI strategies and contribute to subsidiary financial performance. Our examination leverages a dyadic dataset including both the headquarters and subsidiaries of 249 Chinese multinational enterprises (MNEs). The findings reveal that subsidiary managers' global mindset can be a double-edged sword. On the one hand, a global mindset can support the pursuit of two paradoxical FDI strategies simultaneously and benefit subsidiary financial performance, when there is synergy between the two. On the other hand, a global mindset can be detrimental to subsidiary financial performance when a significant level of tension arises between the two paradoxical FDI strategies.

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矛盾的FDI战略、子公司财务绩效和管理的全球思维

本文研究了子公司经理的全球思维如何与矛盾的外国直接投资策略（探索性外国直接投资vs开发性外国直接投资）和跨国公司子公司财务绩效相互作用。从悖论理论的综合视角出发，我们认为子公司管理者的全球思维——一种悖论认知能力——有助于超越悖论FDI战略，并有助于子公司的财务绩效。我们的研究利用了一个二元数据集，包括249家中国跨国企业（MNEs）的总部和子公司。研究结果表明，子公司经理的全球思维可能是一把双刃剑。一方面，当两者之间存在协同作用时，全球思维可以同时支持两种矛盾的FDI战略的追求，并有利于子公司的财务绩效。另一方面，当两种矛盾的外国直接投资战略之间出现显著的紧张关系时，全球心态可能对子公司的财务业绩有害。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Management MANAGEMENT-

自引率

9.80%

发文量

审稿时长

81 days

期刊介绍： The Journal of International Management is devoted to advancing an understanding of issues in the management of global enterprises, global management theory, and practice; and providing theoretical and managerial implications useful for the further development of research. It is designed to serve an audience of academic researchers and educators, as well as business professionals, by publishing both theoretical and empirical research relating to international management and strategy issues. JIM publishes theoretical and empirical research addressing international business strategy, comparative and cross-cultural management, risk management, organizational behavior, and human resource management, among others.