Firm heterogeneity and location choice of Chinese Multinational Enterprises (MNEs)

Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

“…Because they are used to opaque and less munificent home environments (Buckley et al, 2007;Wang et al, 2012b), these firms are less able to adapt to the environment in which institutions are more transparent, predictable and efficient and in which market forces dominate over government forces (Duanmu, 2012). Such environments discourage SOEs from using non-market mechanisms to build competitive advantages (Wang et al, 2012b) as they do at home.…”

“…Because of their weak ties with government, they face unfair competition at home and are less able to access external resources through nonmarket channels (Nee, 1992) and therefore expand abroad to seek stronger institutions (Luo et al, 2010). Furthermore, because they are affected by discriminatory policies at home and are less competent in operating in burdensome institutional environments (Duanmu, 2012), non-state EMEs may benefit from entering foreign markets in which such discrimination is lower or absent. Hence, we propose:…”

Chinese Multinationals: Host Country Factors and Foreign Direct Investment Location

“…We measured host market size by different indicators related to host country GDP (Buckley et al, 2007;Bunyaratavej & Hahn, 2007;Duanmu, 2011;Duanmu & Guney, 2009;Kang & Jiang, 2011;Kolstad & Wiig, 2011;Li & Wu, 2006;Malhotra & Zhu, 2009). More precisely, by using data from the UN Statistics Division (2010), we considered absolute host-market size (proxied by host-country GDP) and host-market growth (proxied by using the annual percentage increase in GDP).…”

“…Based on Buckley et al (2007), Duanmu (2011) and Duanmu and Guney (2009), host country political risk was proxied by the political risk rating of the International Country Risk 13 Guide (PRS, 2010). This rating assigns risk points to a pre-set group of factors, termed political risk components.…”

“…After an initial few years when eminently descriptive papers predominated, recent studies have sought to explore further into certain specific topics, such as the factors that determine Chinese outward FDI location choice (Duanmu, 2011;Duanmu & Guney, 2009;Kang & Jiang, 2011;Kolstad & Wiig, 2011;Pangarkar & Yuan, 2009;Ramasamy, Yeung & Laforet, 2011;Yuan & Pangarkar, 2010). This chapter aims to contribute to this literature by analyzing the influence of various host country factors on the location decisions of Chinese MNEs listed in Fortune Global 500.…”