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The strategies of Chinese and Indian software multinationals: implications for internationalization theory

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  • Jorge Niosi
  • F. Ted Tschang

Abstract

China and India are emerging as major entrants into the international software industry. Both are rapidly learning through outsourcing with multinational enterprises (MNEs) from advanced nations, yet their paths to this dynamic sector are very different. Chinese software firms have focused on their domestic market by working with foreign MNEs, while they move cautiously abroad. Indian firms, which are already large, continue to expand overseas as well as to climb the value chain. Different approaches to MNEs provide useful perspectives. At the same time, the innovation systems approach is necessary to explain the foundations of the industry. The article provides hypotheses and tests them. It concludes that learning internationalization processes are different in Chinese and Indian MNEs, and provides explanations for the different patterns. Copyright 2009 , Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 18 (2009)
Issue (Month): 2 (April)
Pages: 269-294

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Handle: RePEc:oup:indcch:v:18:y:2009:i:2:p:269-294

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Cited by:
  1. Cusmano, Lucia & Morrison, Andrea & Rabellotti, Roberta, 2009. "Catching-Up Trajectories In The Wine Sector: A Comparative Study Of Chile, Italy And South Africa," Working Papers, American Association of Wine Economists 48299, American Association of Wine Economists.
  2. Tschang, F. Ted, 2011. "A Comparison of the Industrialization Paths for Asian Services Outsourcing Industries, and Implications for Poverty Alleviation," ADBI Working Papers, Asian Development Bank Institute 313, Asian Development Bank Institute.
  3. Buckley, Peter J. & Hashai, Niron, 2014. "The role of technological catch up and domestic market growth in the genesis of emerging country based multinationals," Research Policy, Elsevier, Elsevier, vol. 43(2), pages 423-437.
  4. Christian Keen & Yuanyuan Wu, 2011. "An ambidextrous learning model for the internationalization of firms from emerging economies," Journal of International Entrepreneurship, Springer, Springer, vol. 9(4), pages 316-339, December.
  5. Gaur, Ajai S. & Kumar, Vikas & Singh, Deeksha, 2014. "Institutions, resources, and internationalization of emerging economy firms," Journal of World Business, Elsevier, Elsevier, vol. 49(1), pages 12-20.
  6. Ping Lv & Monica Plechero & Basant, Rakesh & Xie-Lin Liu, . "International Competitive Strategy Choices: Comparing Firms in China and India," IIMA Working Papers, Indian Institute of Management Ahmedabad, Research and Publication Department WP2012-01-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
  7. Sidhu, Jatinder S. & Volberda, Henk W., 2011. "Coordination of globally distributed teams: A co-evolution perspective on offshoring," International Business Review, Elsevier, Elsevier, vol. 20(3), pages 278-290, June.
  8. Valeria Gattai, 2013. "The Dragon and the Elephant on the way to Italy," Working Papers, University of Milano-Bicocca, Department of Economics 248, University of Milano-Bicocca, Department of Economics, revised Jun 2013.
  9. Lahiri, Somnath & Kedia, Ben L., 2011. "Co-evolution of institutional and organizational factors in explaining offshore outsourcing," International Business Review, Elsevier, Elsevier, vol. 20(3), pages 252-263, June.
  10. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, Elsevier, vol. 42(2), pages 379-390.
  11. Raman, Revti & Chadee, Doren & Roxas, Banjo & Michailova, Snejina, 2013. "Effects of Partnership Quality, Talent Management, and Global Mindset on Performance of Offshore IT Service Providers in India," Journal of International Management, Elsevier, Elsevier, vol. 19(4), pages 333-346.
  12. Dirk Christian Dohse & Robert Hassink & Claudia Klaerding, 2012. "Emerging multinationals, international knowledge flows and economic geography: a research agenda," Kiel Working Papers, Kiel Institute for the World Economy 1776, Kiel Institute for the World Economy.

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