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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

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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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Publisher 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 listed on IDEAS
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  1. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July. [Downloadable!] (restricted)
  2. Van Biesebroeck, Johannes, 2005. "Firm Size Matters: Growth and Productivity Growth in African Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 545-83, April.
  3. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December. [Downloadable!] (restricted)
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  5. Albert Park & Dean Yang & Xinzheng Shi & Yuan Jiang, 2009. "Exporting and Firm Performance: Chinese Exporters and the Asian Financial Crisis," NBER Working Papers 14632, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Tan, Justin, 2001. "Innovation and risk-taking in a transitional economy: A comparative study of chinese managers and entrepreneurs," Journal of Business Venturing, Elsevier, vol. 16(4), pages 359-376, July. [Downloadable!] (restricted)
  7. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September. [Downloadable!] (restricted)
  8. F. Gerard Adams & Byron Gangnes & Yochanan Shachmurove, 2006. "Why is China so Competitive? Measuring and Explaining China's Competitiveness," The World Economy, Blackwell Publishing, vol. 29(2), pages 95-122, 02. [Downloadable!] (restricted)
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  9. Dollar, David, 2008. "Lessons from China for Africa," Policy Research Working Paper Series 4531, The World Bank. [Downloadable!]
  10. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November. [Downloadable!] (restricted)
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