Abstract Different from the previous research, this study investigates the impact of past behavior of peer firms around organizational environment on firm’s location choice, from the perspective of interorganizational imitation. Based on the data from Chinese FDI toward the US, it is found that imitation is an important factor in explaining firm’s location choice of Chinese FDI toward the US, that is, firm’s location choice can be impacted by past behavior of peer chinese firms in the same or different industries. In addition, peer firms in the same industry have a greater effect than those in different industry, which means that firms tend to imitate the behavior of the firms that similar to themselves. Furthermore, environmental uncertainty can play a moderating role on imitative behavior. When there is great environmental uncertainty, it strengthens the positive impact of past behavior of other firms on location choice of current firm.
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Received: 29 April 2014
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