Internationalisation Process, HRM Strategy and Transfer in Chinese MNCs’ Subsidiaries in the UK

In recent years, the internationalisation process of Chinese MNCs has attracted the attention of those researching international business and management. Research has mainly explored the motivation, entrance models and characteristics of the internationalisation process of Chinese MNCs as late comers to international markets (e.g. Cui and Jiang 2009; Rugman and Li 2007; Rui and Yip 2008; Luo and Tung 2007; Child and Rodrigues 2005; Buckly et al. 2006; Mathews 2002; Yeung 1994). For example, some authors have suggested that in contrast with MNCs from advanced economies who use their own knowledge and skills when they locate overseas (knowledge takers), Chinese companies as late comers are more likely to be knowledge seekers (Rugman and Li 2007; Bonaglia et al. 2007). However, others have argued that Chinese companies also have some distinctive national characteristics that may give them advantages when they operate aboard (e.g. Rui and Yip 2008), the most important being the support and influence of the Chinese State (Luo and Tung 2007; Zhang and Bulcke 1994). However, research has mostly been conducted at national or parent company level. Little is known about the behaviour of overseas subsidiaries of Chinese MNCs in relation to whether and how “knowledge seeking” takes place, what HRM strategies they use in order to promote transfer, and how different factors influence their knowledge seeking process if they do so. In this paper, we attempt to explore these questions through case studies of three UK subsidiaries of Chinese MNCs.