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“Rushing in where angels fear to tread”?: The early internationalization of indigenous Chinese firms

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Author Info

  • Wim Naudé

Abstract

Purpose – The purpose of this paper is to determine whether there are empirical differences in the extent and motivation of early internationalisation between indigenous and foreign-invested Chinese firms. Design/methodology/approach – Data on 3,948 firms surveyed by the World Bank in 2002 and 2003 in China are used and four hypotheses are tested using regression analysis. Findings – Despite having started with internationalisation relatively more recently than most foreign-invested firms, and having less foreign experience, indigenous firms which internationalise early perform better than foreign-invested firms. Research limitations/implications – The data were not gathered with international entrepreneurship in mind, may not include all relevant control variables, and lack a panel. Originality/value – China is a country noted for its success in internationalisation. However, this has been due, in the most part, to foreign-invested firms, with indigenous firms seemingly being less successful. This makes knowledge of the differences in early internationalisation behaviour of indigenous versus foreign-invested firms potentially interesting.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal Journal of Chinese Economic and Foreign Trade Studies.

Volume (Year): 2 (2009)
Issue (Month): 3 (October)
Pages: 163-177

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Handle: RePEc:eme:ceftpp:v:2:y:2009:i:2:p:163-177

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Related research

Keywords: Business formation; China; Entrepreneurialism; Exports; International business;

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References

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  1. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
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  15. Anna Nadolska & Harry G Barkema, 2007. "Learning to internationalise: the pace and success of foreign acquisitions," Journal of International Business Studies, Palgrave Macmillan, vol. 38(7), pages 1170-1186, December.
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  17. Acedo, Francisco J. & Jones, Marian V., 2007. "Speed of internationalization and entrepreneurial cognition: Insights and a comparison between international new ventures, exporters and domestic firms," Journal of World Business, Elsevier, vol. 42(3), pages 236-252, September.
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Cited by:
  1. Pearson, Joseph & Viviers, Wilma & Cuyvers, Ludo & Naudé, Wim, 2010. "Identifying export opportunities for South Africa in the southern engines: A DSM approach," International Business Review, Elsevier, vol. 19(4), pages 345-359, August.
  2. Jones, Marian V. & Coviello, Nicole & Tang, Yee Kwan, 2011. "International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 632-659.

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