Unlocking global horizons through outbound tourism: An institutional logics approach to driving outward FDI by tourism firms from emerging countries

Grounded in institutional logics theory, this study investigates how outbound tourism drives outward foreign direct investment (OFDI) by emerging-country tourism firms (ETFs). We argue that the rise of outbound tourism in emerging countries fosters an "outward-looking social logic" within the broader population, which can widely increase ETFs’ cognitive preference for investing abroad. Given the complexity of institutional logics, we further posit that the positive relationship between outbound tourism and ETFs’ OFDI is contingent upon three key moderators associated with distinct logics—CEO foreign experience (imprinted individual-level outward-looking logic), state ownership (linked to organizational-level political logic), and home-market attractiveness (tied with industry-level domestic-market logic)—which can either amplify or attenuate the influence of the outward-looking social logic fostered by outbound tourism. Employing a longitudinal dataset of 794 firm-year observations from 64 publicly listed Chinese tourism firms spanning 2001–2019, our findings robustly support a positive association between outbound tourism and ETFs’ OFDI. This effect is amplified in firms led by returnee CEOs but attenuated in state-owned enterprises and those operating in home industries with high attractiveness. Our study contributes to the internationalization literature by advancing our understanding of the antecedents of OFDI by (tourism) service firms from emerging countries. It also offers valuable insights for practitioners in these countries navigating global expansion and for policymakers in host countries seeking to attract overseas investors from emerging economies.