Journal of Business Research

• Freedom of digital media (FDM) is associated with EMNEs’ entry mode choice. • High level of FDM is positively associated with the likelihood of choosing WOS. • Transparency within an EMNE strengthen the positive relationship. • External control of corruption also strengthens the positive relationship. The impact of freedom of digital media in host countries has been under-researched in the literature of the internationalization decisions of emerging multinational enterprises (EMNEs). Through integrating the stakeholder perspective with transaction cost economics, we examine the role of host-country digital media in influencing the foreign direct investment (FDI) entry mode choice of EMNEs and its boundary conditions associated with internal and external corruption-controlling efforts. Using a panel dataset of Chinese listed manufacturing firms’ outward FDI between 2010 and 2016, our empirical analyses indicate that freedom of digital media in a host country has positive impact on an EMNE’s wholly owned subsidiary choice as FDI entry mode. This main relationship is strengthened by EMNE transparent information disclosure and external control of corruption in the host country.

Digital media, control of corruption, and emerging multinational enterprise’s FDI entry mode choice