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“Rushing in where angels fear to tread”?: The early internationalization of indigenous Chinese firms

  • Wim Naudé

Purpose – The purpose of this paper is to determine whether there are empirical differences in the extent and motivation of early internationalisation between indigenous and foreign-invested Chinese firms. Design/methodology/approach – Data on 3,948 firms surveyed by the World Bank in 2002 and 2003 in China are used and four hypotheses are tested using regression analysis. Findings – Despite having started with internationalisation relatively more recently than most foreign-invested firms, and having less foreign experience, indigenous firms which internationalise early perform better than foreign-invested firms. Research limitations/implications – The data were not gathered with international entrepreneurship in mind, may not include all relevant control variables, and lack a panel. Originality/value – China is a country noted for its success in internationalisation. However, this has been due, in the most part, to foreign-invested firms, with indigenous firms seemingly being less successful. This makes knowledge of the differences in early internationalisation behaviour of indigenous versus foreign-invested firms potentially interesting.

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Article provided by Emerald Group Publishing in its journal Journal of Chinese Economic and Foreign Trade Studies.

Volume (Year): 2 (2009)
Issue (Month): 3 (October)
Pages: 163-177

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Handle: RePEc:eme:ceftpp:v:2:y:2009:i:2:p:163-177
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