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The Internationalization of Chinese Firms: A Case for Theoretical Extension?
Abstract
This paper examines the patterns of, and motives for, internationalization by prominent market-seeking Chinese firms. Case studies of these firms indicate that they are seeking technological and brand assets to create a competitive position in international markets. While mainstream theory tends to assume that firms internationalize to exploit competitive advantages, Chinese firms are generally making such investments in order to address competitive disadvantages. They are engaging in ‘inward’ internationalization by means of original equipment manufacture (OEM) and joint venture partnerships, and ‘outward’ internationalization by means of acquisition and organic expansion abroad. Each of these routes offers certain benefits coupled with its own challenges or risks. The paper concludes that the Chinese case offers an opportunity to extend present theorizing in four primary areas concerning the latecomer perspective and catch-up strategies, institutional analysis with reference to the role of government, the relations between entrepreneurs and institutions, and the liability of foreignness.
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Cited by
International expansion of emerging market enterprises: A springboard perspective
Luo, Y., & Tung, R. L. (2007) · Journal of International Business Studies · doi:10.1057/palgrave.jibs.8400275 · Cited by 3,118
Foreign acquisitions by Chinese firms: A strategic intent perspective
Rui, H., & Yip, G. S. (2008) · Journal of World Business · doi:10.1016/j.jwb.2007.11.006 · Cited by 803
De-globalization: Theories, predictions, and opportunities for international business research
Witt, M. A. (2019) · Journal of International Business Studies · doi:10.1057/s41267-019-00219-7 · Cited by 680
Park, J., Sarkis, J., & Wu, Z. (2010) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2010.06.001 · Cited by 375
Outward foreign direct investment by emerging market firms: A resource dependence logic
Xia, J., Ma, X., Lu, J. W., & Yiu, D. W. (2014) · Strategic Management Journal · doi:10.1002/smj.2157 · Cited by 373
Metadata
- Authors
- Child, J., & Rodrigues, S. B.
- Venue
- Management and Organization Review
- Publisher
- Cambridge University Press (CUP)
- Published
- 2005-11
- Volume
- 1
- Issue
- 3
- Pages
- 381-410
- ISSN
- 1740-8776 (ISSN-L)
- 1740-8784
- OpenAlex
- W3124218595
- Cited by
- 1,435
- References
- 3
- FWCI
- 53.73
- Type
- journal article
- Language
- en
- Open access
- closed
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