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Internationalization and Technological Catching Up of Emerging Multinationals: A Case Study of China's Haier Group

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Author Info
Duysters, Geert () (UNU-MERIT)
Jacob, Jojo () (UNU-MERIT)
Lemmens, Charmianne () (UNU-MERIT)
Hu, Jintian (Wuhan University of Technology)

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Abstract

In recent years, a number of firms from Asia and Latin America have been internationalizing their businesses to access new markets and to acquire new technology. This follows similar attempts only a few years earlier by leading firms from countries such as Korea and Taiwan. Much research has gone during the last two decades into understanding the success of Korean and Taiwanese firms. In this paper we carry out a case study of the Haier group—one of the most promising global enterprises emerging out of mainland China. We explain the need for recognizing some important differences in the early stages of growth between emerging MNCs today and MNCs from Korea and Taiwan. Unlike firms from the latter countries, globalizing firms of recent times during their early years of existence had little incentives to improve their technological competence. Furthermore, they generally had a one-off relationship with international technology suppliers that further prevented the regular upgrading of their technological base. Nevertheless these firms have shown themselves to be adept in facing up to the challenges of globalization by adopting innovative technological and business strategies. What are the distinctive features of these strategies? How useful are these strategies for long-run growth? What lessons can other firms and governments learn from these experiences? We hope to offer some preliminary answers to these important questions. Case studies like ours can also contribute towards developing newer frameworks for a better understanding of the internationalization of businesses in modern times.

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Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 052.

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Date of creation: 2008
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Handle: RePEc:dgr:unumer:2008052

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Related research
Keywords: emerging MNCs; internationalization; technology strategies; alliances; technological catching up; Haier group; China; MNEs;

Find related papers by JEL classification:
L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

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References listed on IDEAS
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    Other versions:
  2. Hobday, Mike, 1995. "East Asian latecomer firms: Learning the technology of electronics," World Development, Elsevier, vol. 23(7), pages 1171-1193, July. [Downloadable!] (restricted)
  3. Bonaglia, Federico & Goldstein, Andrea & Mathews, John, 2006. "Accelerated Internationalisation by Emerging Multinationals: the Case of White Goods Sector," MPRA Paper 1485, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  4. Smyth, Russell, 2000. "Should China be Promoting Large-Scale Enterprises and Enterprise Groups?," World Development, Elsevier, vol. 28(4), pages 721-737, April. [Downloadable!] (restricted)
  5. Catherine Beaudry, 2001. "Entry, Growth and Patenting in Industrial Clusters: A Study of the Aerospace Industry in the UK," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(3), pages 405-436, November. [Downloadable!] (restricted)
  6. Ghemawat, Pankaj & Khanna, Tarun, 1998. "The Nature of Diversified Business Groups: A Research Design and Two Case Studies," Journal of Industrial Economics, Blackwell Publishing, vol. 46(1), pages 35-61, March. [Downloadable!] (restricted)
  7. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June. [Downloadable!]
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