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.:
- 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.
- 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.
- Chaminade, Cristina & Vang, Jan, 2008.
"Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry,"
Elsevier, vol. 37(10), pages 1684-1696, December.
- 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.
- 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, 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.
- 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.
- 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.
- 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.
- 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.
- Mike Peng, 2005. "Perspectives—From China Strategy to Global Strategy," Asia Pacific Journal of Management, Springer, vol. 22(2), pages 123-141, June.
- Martin Srholec, 2011.
"A Multilevel Analysis of Innovation in Developing Countries,"
CERGE-EI Working Papers
wp432, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Martin Srholec, 2008. "A multilevel analysis of innovation in developing countries," Working Papers on Innovation Studies 20080812, Centre for Technology, Innovation and Culture, University of Oslo.
- Srholec, Martin, 2008. "A Multilevel Analysis of Innovation in Developing Countries," UNU-MERIT Working Paper Series 040, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.