The ¡®Liability of Foreignness¡¯: Chinese Investment in Australia
In the case of Chinese investment in Australia, most of the investment is undertaken by Chinese state-owned enterprises. As a consequence, they can leverage the massive resources available to them, and thus able to bypass some of the stages implicit in the internationalization thesis. These advantages are at the same time creating a problem for Chinese investors in Australia. Their ¡®foreignness¡¯, and in particular, their ownership has become a liability. They invoked fear and anxiety amongst the larger population and institutional friction is real. Australian companies, its media and government (including politicians and public officials) have found the idea of a putative Chinese takeover of Australia challenging and confronting. Using the case of Chinalco¡¯s bid for Rio Tinto, I seek to show how these institutional differences and the different logics engendered are played out and its attendant effects. The paper shows that theoretically and at a practical level, the internationalization of Chinese firms is a real challenge; it also argues that both Chinese firms and their Australian hosts have lessons to learn from each other. Arguably, there are also lessons for emerging firms and their internationalization into developed markets economies.
Volume (Year): 4 (2012)
Issue (Month): 4 (December)
|Contact details of provider:|| Postal: 1568 Merivale Rd. Suite # 618, Ottawa, Ontario, Canada K2G 5Y7|
When requesting a correction, please mention this item's handle: RePEc:oul:tncr09:v:4:y:2012:i:4:p:46-75. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Denny Liao)The email address of this maintainer does not seem to be valid anymore. Please ask Denny Liao to update the entry or send us the correct email address or (Jen Ma)
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.