We investigate the role of social capital and cultural biases in investment by foreign high-tech firms in China. We find social capital of provinces in the host country, social capital of the foreign company's home country, and the cultural difference between the two countries are important...

Investment by foreign firms in a host country is a good setting to study the two concepts in social psychology: cultural biases among foreign companies, and social capital among regions in the host country. We choose to investigate investment by foreign high tech firms in China. We find both...