Manager’s Perceptions of the Impact of Foreign Direct Investment Liberalizations: Information Technology Firms in India

Firms differ in the effects that foreign direct investment liberalizations have on their businesses, and in the responses they make to adjust to the liberalized business environment. In this study the authors investigate the perceived effects that FDI liberalizations have on the business of Indian information technology companies. Their results show that foreign-invested firms and firms that increased the number of their non-equity strategic alliances perceive more positive effects than firms with weaker foreign collaborations. Some but not all types of technology transfer through external markets from abroad make an additional contribution to the firm’s business after FDI liberalizations.