International Competitive Strategy Choices: Comparing Firms in China and India
AbstractThe international business literature has yet to adequately explore international competitive strategy choices made by firms in developing countries. This study aims to address this gap by investigating the types of international competitive strategies followed by Chinese and Indian firms. Using firm-level primary data, the study analyzes factors that affect strategy choices and whether these factors differ between the two countries. The empirical results indicate that besides cost leadership strategies, firms have already developed international differentiation strategies and strategies combining cost and differentiation advantages (hybrid strategies). This confirms that firms from China and India are moving to international markets not only because of their low cost advantage but also because they are upgrading their capabilities to compete in the global market. The study highlights the fact that firms’ resources and capabilities influence firms’ propensity to choose a specific international competitive strategy and that the strategies can also differ in relation to the destination market. In general, the pursuit of well-articulated international competitive strategies (in particular differentiation strategy) is more common among Indian firms than among Chinese firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Indian Institute of Management Ahmedabad, Research and Publication Department in its series IIMA Working Papers with number WP2012-01-05.
Date of creation:
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chaminade, Cristina & Vang, Jan, 2008.
"Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in the Bangalore Software Industry,"
CIRCLE Electronic Working Papers
2008/20, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Chaminade, Cristina & Vang, Jan, 2008. "Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry," Research Policy, Elsevier, vol. 37(10), pages 1684-1696, December.
- Bruton, Garry D. & Lohrke, Franz T. & Lu, Jane W., 2004. "The evolving definition of what comprises international strategic management research," Journal of International Management, Elsevier, vol. 10(3), pages 413-429.
- Kendall Roth & David M Schweiger & Allen J Morrison, 1991. "Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 369-402, September.
- Plechero, Monica & Chaminade, Cristina, 2010. "From new to the firm to new to the world. Effect of geographical proximity and technological capabilities on the degree of novelty in emerging economies," CIRCLE Electronic Working Papers 2010/12, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Simonen, Jaakko & McCann, Philip, 2008.
"Firm innovation: The influence of R&D cooperation and the geography of human capital inputs,"
Journal of Urban Economics,
Elsevier, vol. 64(1), pages 146-154, July.
- Jaakko Simonen & Philip McCann, 2007. "Firm Innovation: The Influence Of R&D Cooperation And The Geography Of Human Capital Inputs," Monash Economics Working Papers 29-07, Monash University, Department of Economics.
- Plechero, Monica & Chaminade, Cristina, 2010. "Different competences, different modes in the globalization of innovation?. A comparative study of the Pune and Beijing regions," CIRCLE Electronic Working Papers 2010/3, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Jorge Niosi & F. Ted Tschang, 2009. "The strategies of Chinese and Indian software multinationals: implications for internationalization theory," Industrial and Corporate Change, Oxford University Press, vol. 18(2), pages 269-294, April.
- Acquaah, Moses & Yasai-Ardekani, Masoud, 2008. "Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 61(4), pages 346-354, April.
- John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan, vol. 11(1), pages 9-31, March.
- Saarenketo, Sami & Puumalainen, Kaisu & Kuivalainen, Olli & Kylaheiko, Kalevi, 2004. "Dynamic knowledge-related learning processes in internationalizing high-tech SMEs," International Journal of Production Economics, Elsevier, vol. 89(3), pages 363-378, June.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Luo, Yadong & Zhao, Hongxin, 2004. "Corporate link and competitive strategy in multinational enterprises: a perspective from subsidiaries seeking host market penetration," Journal of International Management, Elsevier, vol. 10(1), pages 77-105.
- Lin, Bou-Wen & Lee, Yikuan & Hung, Shih-Chang, 2006. "R&D intensity and commercialization orientation effects on financial performance," Journal of Business Research, Elsevier, vol. 59(6), pages 679-685, June.
- Allred, Brent B. & Swan, K. Scott, 2004. "Contextual influences on international subsidiaries' product technology strategy," Journal of International Management, Elsevier, vol. 10(2), pages 259-286.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.