Outward foreign direct investment strategy and technological capabilities accumulation: A case study

A number of developing-country firms made headlines when they invest abroad. Such headlines increased the interest of researchers in outward foreign direct investment (FDI) from developing countries. This paper focused on the relationship between developing-country firms´ outward FDI strategy and their technological capabilities accumulation. This relationship was examined through a case study of a Chinese automotive components manufacturer. This study found out that outward FDI strategy has positive effects on developing-country firms´ technological capabilities accumulation. And these effects were positively associated with firm´s absorptive capacity.