IDEAS home Printed from https://ideas.repec.org/a/ibn/ibrjnl/v10y2017i10p82-93.html

Why Chinese Companies Go Abroad? A Theoretical Model to Explain the Drivers of the Internationalization Strategy of Chinese MNEs

Author

Listed:
  • Adele Parmentola

Abstract

China is today considered the second power in the world after the USA and recently many Chinese companies became global leaders in their specific industries. This success is also realized thanks to the expansion strategy adopted by many Chinese multinationals that have realized FDIs both towards other developing countries and towards advanced economies. What are the determinants that push the Chinese companies to go abroad? Are the traditional internalization theories based on the concept of ownership advantage able to explain the internationalization of Chinese MNES? Accordingly aim of this paper is to describe the determinants that induce the Chinese companies to realize FDIs and the characteristics that distinguish their internationalization strategy by the strategy adopted by developed countries multinationals.

Suggested Citation

  • Adele Parmentola, 2017. "Why Chinese Companies Go Abroad? A Theoretical Model to Explain the Drivers of the Internationalization Strategy of Chinese MNEs," International Business Research, Canadian Center of Science and Education, vol. 10(10), pages 82-93, October.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:10:p:82-93
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ibr/article/view/70468/38624
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ibr/article/view/70468
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ferrantino, Michael J., 1992. "Transaction costs and the expansion of Third-World multinationals," Economics Letters, Elsevier, vol. 38(4), pages 451-456, April.
    2. Henry Wai‐Chung Yeung, 1999. "The internationalization of ethnic Chinese business firms from Southeast Asia: strategies, processes and competitive advantage," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(1), pages 88-102, March.
    3. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    4. Moon, Hwy-Chang & Roehl, Thomas W., 2001. "Unconventional foreign direct investment and the imbalance theory," International Business Review, Elsevier, vol. 10(2), pages 197-215, April.
    5. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0, April.
    6. Lecraw, Donald J, 1977. "Direct Investment by Firms from Less Developed Countries," Oxford Economic Papers, Oxford University Press, vol. 29(3), pages 442-457, November.
    7. Stan D Reid, 1981. "The Decision-Maker and Export Entry and Expansion," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 12(2), pages 101-112, June.
    8. M Krishna Erramilli & Sanjeev Agarwal & Seong-Soo Kim, 1997. "Are Firm-Specific Advantages Location-Specific Too?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 735-757, December.
    9. Otto Andersen, 1993. "On the Internationalization Process of Firms: A Critical Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 209-231, June.
    10. Deng, Ping, 2004. "Outward investment by Chinese MNCs: Motivations and implications," Business Horizons, Elsevier, vol. 47(3), pages 8-16.
    11. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    12. repec:bla:econom:v:38:y:1971:i:149:p:1-27 is not listed on IDEAS
    13. Donald J Lecraw, 1993. "Outward Direct Investment by Indonesian Firms: Motivation and Effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(3), pages 589-600, September.
    14. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shen Gangyi & Md Hoque & Peng Zhangwen, 2018. "The Impact of Culture on Business Negotiation Styles: A Comparative Study between Bangladesh and China," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(8), pages 121-121, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    2. Cuervo-Cazurra, Alvaro, 2007. "Sequence of value-added activities in the multinationalization of developing country firms," Journal of International Management, Elsevier, vol. 13(3), pages 258-277, September.
    3. Tamar Almor & Niron Hashai & Seev Hirsch, 2006. "The product cycle revisited: Knowledge intensity and firm internationalization," Management International Review, Springer, vol. 46(5), pages 507-528, September.
    4. Len J Treviño & Jonathan P Doh, 0. "Internationalization of the firm: A discourse-based view," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-19.
    5. Peter J. Buckley & Adam R. Cross & Hui Tan & Liu Xin & Hinrich Voss, 2008. "Historic and Emergent Trends in Chinese Outward Direct Investment," Management International Review, Springer, vol. 48(6), pages 715-748, December.
    6. Céline CARRERE & Marco FUGAZZA & Marcelo OLARREAGA & Frédéric ROBERT-NICOUD, 2016. "On the heterogeneous effect of trade on unemployment," Working Papers P180, FERDI.
    7. Len J Treviño & Jonathan P Doh, 2021. "Internationalization of the firm: A discourse-based view," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(7), pages 1375-1393, September.
    8. Alvaro, Cuervo-Cazurra, 2011. "Selecting the country in which to start internationalization: The non-sequential internationalization model," Journal of World Business, Elsevier, vol. 46(4), pages 426-437, October.
    9. Reddy, Kotapati Srinivasa, 2016. "Institutional Voids and Tax litigation in Emerging Economies: The verdict of Vodafone cross-border acquisition of Hutchison," MPRA Paper 74264, University Library of Munich, Germany, revised 2016.
    10. Nuno Calheiros-Lobo & José Vasconcelos Ferreira & Manuel Au-Yong-Oliveira, 2023. "SME Internationalization and Export Performance: A Systematic Review with Bibliometric Analysis," Sustainability, MDPI, vol. 15(11), pages 1-36, May.
    11. Chabowski, Brian R. & Samiee, Saeed, 2023. "A bibliometric examination of the literature on emerging market MNEs as the basis for future research," Journal of Business Research, Elsevier, vol. 155(PB).
    12. Gregory Theyel & Kay Hofmann & Mike Gregory, 2018. "Understanding Manufacturing Location Decision Making: Rationales for Retaining, Offshoring, Reshoring, and Hybrid Approaches," Economic Development Quarterly, , vol. 32(4), pages 300-312, November.
    13. Elizabeth L. Rose & Kiyohiko Ito, 2009. "Past Interactions and New Foreign Direct Investment Location Decisions," Management International Review, Springer, vol. 49(5), pages 641-669, October.
    14. Mehmet Demirbag & Martina McGuinness & Hüseyin Altay, 2010. "Perceptions of Institutional Environment and Entry Mode," Management International Review, Springer, vol. 50(2), pages 207-240, April.
    15. Brennan, L. & Garvey, D., 2009. "The role of knowledge in internationalization," Research in International Business and Finance, Elsevier, vol. 23(2), pages 120-133, June.
    16. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?," International Business Review, Elsevier, vol. 25(4), pages 986-996.
    17. Clark, Timothy & Pugh, Derek S. & Mallory, Geoff, 1997. "The process of internationalization in the operating firm," International Business Review, Elsevier, vol. 6(6), pages 605-623, December.
    18. Gorynia, Marian & Jankowska, Barbara, . "Teorie internacjonalizacji," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2010(10).
    19. Gorynia, Marian & Jankowska, Barbara, . "Teorie internacjonalizacji," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2007(10).
    20. Demirbag, Mehmet & Tatoglu, Ekrem & Glaister, Keith W., 2009. "Equity-based entry modes of emerging country multinationals: Lessons from Turkey," Journal of World Business, Elsevier, vol. 44(4), pages 445-462, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:10:p:82-93. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.