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How suppliers penetrate overseas market : internationalization of Chinese firms from the value chain perspective

Author

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  • Fujita, Mai

Abstract

This paper examines how Chinese firms serving the low-end domestic market internationalize into developing country markets abroad. It adopts a value-chain-focused approach to analyze the internationalization of Chinese firms into the Vietnamese motorcycle industry. The analysis shows that it was Chinese component suppliers rather than Chinese motorcycle manufacturers that successfully penetrated low-end market at the destination. Chinese suppliers did so by focusing on production-related expertise to provide key components to many locally-owned firms that undertook end-product assembly and distribution. The findings suggest that the research on the internationalization of Chinese firms needs to be embedded in the context of industrial organization in Chinese industries and its transformation.

Suggested Citation

  • Fujita, Mai, 2018. "How suppliers penetrate overseas market : internationalization of Chinese firms from the value chain perspective," IDE Discussion Papers 727, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper727
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=50638&item_no=1&attribute_id=22&file_no=1
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    More about this item

    Keywords

    internationalization; suppliers; China; Vietnam; motorcycle industry; Industrial management;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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