IDEAS home Printed from https://ideas.repec.org/a/taf/apbizr/v19y2013i4p542-558.html
   My bibliography  Save this article

International competitive strategy choices: comparing firms in China and India

Author

Listed:
  • Ping Lv
  • Monica Plechero
  • Rakesh Basant

Abstract

This study investigates the types of international competitive strategies (ICS) followed by Chinese and Indian firms. Using firm-level primary data, the contribution analyses the factors that affect ICS choices and whether these factors differ between the two countries. It argues that firms' resources and capabilities influence firms' propensity to choose a specific ICS and that the strategies differ in relation to firms' location, sector and destination market as well.

Suggested Citation

  • Ping Lv & Monica Plechero & Rakesh Basant, 2013. "International competitive strategy choices: comparing firms in China and India," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(4), pages 542-558, October.
  • Handle: RePEc:taf:apbizr:v:19:y:2013:i:4:p:542-558
    DOI: 10.1080/13602381.2013.815442
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13602381.2013.815442
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/13602381.2013.815442?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lin, Bou-Wen & Lee, Yikuan & Hung, Shih-Chang, 2006. "R&D intensity and commercialization orientation effects on financial performance," Journal of Business Research, Elsevier, vol. 59(6), pages 679-685, June.
    2. Martin Srholec, 2011. "A multilevel analysis of innovation in developing countries ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1539-1569, December.
    3. Allred, Brent B. & Swan, K. Scott, 2004. "Contextual influences on international subsidiaries' product technology strategy," Journal of International Management, Elsevier, vol. 10(2), pages 259-286.
    4. Altenburg, Tilman & Schmitz, Hubert & Stamm, Andreas, 2008. "Breakthrough China's and India's Transition from Production to Innovation," World Development, Elsevier, vol. 36(2), pages 325-344, February.
    5. 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.
    6. Basant, Rakesh & Chandra, Pankaj, 2007. "Role of Educational and R&D Institutions in City Clusters: An Exploratory Study of Bangalore and Pune Regions in India," World Development, Elsevier, vol. 35(6), pages 1037-1055, June.
    7. 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.
    8. 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 and the Associazione ICC, vol. 18(2), pages 269-294, April.
    9. Saran, Anshu & Guo, Chiquan, 2005. "Competing in the global marketplace: The case of India and China," Business Horizons, Elsevier, vol. 48(2), pages 135-142.
    10. Zhao, Weilin & Watanabe, Chihiro, 2008. "A comparison of institutional systems affecting software advancement in China and India: The role of outsourcing from Japan and the United States," Technology in Society, Elsevier, vol. 30(3), pages 429-436.
    11. 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;Academy of International Business, vol. 22(3), pages 369-402, September.
    12. Huang, Can & Arundel, Anthony & Hollanders, Hugo, 2010. "How Firms Innovate: R&D, Non-R&D, and Technology Adoption," Working Papers 9854, University of Tasmania, Tasmanian School of Business and Economics, revised 19 Nov 2012.
    13. 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," Papers in Innovation Studies 2010/12, Lund University, CIRCLE - Centre for Innovation Research.
    14. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    15. 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.
    16. Ortega, María José Ruiz, 2010. "Competitive strategies and firm performance: Technological capabilities' moderating roles," Journal of Business Research, Elsevier, vol. 63(12), pages 1273-1281, December.
    17. Chaminade, Cristina & Vang, Jan, 2008. "Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry," Research Policy, Elsevier, vol. 37(10), pages 1684-1696, December.
    18. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    19. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    20. 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.
    21. Plechero, Monica & Chaminade, Cristina, 2010. "Different competences, different modes in the globalization of innovation?. A comparative study of the Pune and Beijing regions," Papers in Innovation Studies 2010/3, Lund University, CIRCLE - Centre for Innovation Research.
    22. Fahy, John, 2002. "A resource-based analysis of sustainable competitive advantage in a global environment," International Business Review, Elsevier, vol. 11(1), pages 57-77, February.
    23. 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.
    24. Segal, Adam, 2008. "Autonomy, security, and inequality: China, India, the United States, and the globalization of science and technology," Technology in Society, Elsevier, vol. 30(3), pages 423-428.
    25. Nile W. Hatch & Jeffrey H. Dyer, 2004. "Human capital and learning as a source of sustainable competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 25(12), pages 1155-1178, December.
    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. Janti Gunawan & Kym Fraser, 2022. "Comparing Developed and Emerging Countries Exporting Performance: Does Strategic Choice or Environmental Pressure Matter?," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(3), pages 421-430, September.

    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. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    2. Cristina Chaminade & Ramón Padilla-Pérez, 2017. "The challenge of alignment and barriers for the design and implementation of science, technology and innovation policies for innovation systems in developing countries," Chapters, in: Stefan Kuhlmann & Gonzalo Ordóñez-Matamoros (ed.), Research Handbook on Innovation Governance for Emerging Economies, chapter 6, pages 181-204, Edward Elgar Publishing.
    3. Yoo, Dasun & Reimann, Felix, 2017. "Internationalization of Developing Country Firms into Developed Countries: The Role of Host Country Knowledge-Based Assets and IPR Protection in FDI Location Choice," Journal of International Management, Elsevier, vol. 23(3), pages 242-254.
    4. Barbieri, Paolo & Boffelli, Albachiara & Elia, Stefano & Fratocchi, Luciano & Kalchschmidt, Matteo, 2022. "How does Industry 4.0 affect international exposure? The interplay between firm innovation and home-country policies in post-offshoring relocation decisions," International Business Review, Elsevier, vol. 31(4).
    5. Peter J. Buckley & Roger Strange & Marcel P. Timmer & Gaaitzen J. de Vries, 2020. "Catching-up in the global factory: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 79-106, June.
    6. Yiping Huang & Bijun Wang, 2013. "Investing Overseas Without Moving Factories Abroad: The Case of Chinese Outward Direct Investment," Asian Development Review, MIT Press, vol. 30(1), pages 85-107, March.
    7. Andreas P. J. Schotter & Ram Mudambi & Yves L. Doz & Ajai Gaur, 2017. "Boundary Spanning in Global Organizations," Journal of Management Studies, Wiley Blackwell, vol. 54(4), pages 403-421, June.
    8. Monica Plechero & Cristina Chaminade, 2016. "Spatial distribution of innovation networks, technological competencies and degree of novelty in emerging economy firms," European Planning Studies, Taylor & Francis Journals, vol. 24(6), pages 1056-1078, June.
    9. Šárka Zapletalová, 2016. "Competitive Strategies: A New Perspective on the Internationalization of the Czech Enterprises," Working Papers 0035, Silesian University, School of Business Administration.
    10. Oh, Chang Hoon & Kim, Minyoung & Shin, Jiyoung, 2019. "Paths and geographic scope of international expansion across industries," International Business Review, Elsevier, vol. 28(3), pages 560-574.
    11. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, vol. 42(2), pages 379-390.
    12. Collinson S. & Narula, R., 2014. "Asset recombination in international partnerships as a source of improved innovation capabilities in China," MERIT Working Papers 2014-061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Lydia Bals & Jon F. Kirchoff & Kai Foerstl, 2016. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research," Operations Management Research, Springer, vol. 9(3), pages 102-116, December.
    14. Yung-Heng Lee & Yann-Haur Huang & Mei-Jane Chan, 2009. "An Empirical Study Of Wholly-Owned Subsidiaries And Joint Ventures For Entry Into China Markets," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 3(2), pages 9-22.
    15. Czesława Pilarska, 2018. "Efekty zewnętrzne bezpośrednich inwestycji zagranicznych z perspektywy kraju goszczącego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 93-124.
    16. Reinhold Decker & Xuemin Zhao, 2004. "SMEs' Choice of Foreign Market Entry Mode: A Normative Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 181-200, December.
    17. Fuentelsaz, Lucio & Garrido, Elisabet & Maicas, Juan P., 2020. "The effect of informal and formal institutions on foreign market entry selection and performance," Journal of International Management, Elsevier, vol. 26(2).
    18. Chen, Hong & Gangopadhyay, Partha & Singh, Baljeet & Chen, Kairan, 2023. "What motivates Chinese multinational firms to invest in Asia? Poor institutions versus rich infrastructures of a host country," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    19. Ruben Molina Martinez & Oscar Hugo Pedraza Rendon & Jorge Luis Alcaraz Vargas, 2012. "Multinationalization Of Mexican Companies, La Multinacionalizacion De La Empresa Mexicana," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 5(5), pages 71-85.
    20. Sharma, Sunil, 2015. "Internationalization of Firms from Emerging Economies: An Organizational Learning Framework," IIMA Working Papers WP2015-03-17, Indian Institute of Management Ahmedabad, Research and Publication Department.

    More about this item

    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:taf:apbizr:v:19:y:2013:i:4:p:542-558. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FAPB20 .

    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.