Outward internationalization of private enterprises in China: The effect of competitive advantages and disadvantages compared to home market rivals

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

“…POEs are increasingly operating in a free market environment and are more likely to be influenced by market forces and to be commercially motivated (Liu et al, 2008;Ramasamy et al, 2012). They more closely resemble their developed economy (DE) counterparts (Liang, Lu & Wang, 2012). This is in contrast to SOEs' objectives which can be politically motivated and can be determined by the government's consideration of China's political and economic influence in the world.…”

The effect of institutional isomorphic pressure on the internationalization of firms in an emerging economy: evidence from China

“…For example, Liang, Lu, and Wang (2012) found that private firms in China seek outward internationalization both to exploit competitive advantage and to overcome competitive disadvantage. Although firms from emerging economies have different patterns of international expansion, they still need to possess capabilities allowing them to overcome the liability of foreignness (Guillén and Garcia-Canal 2009).…”

Competing in Emerging Markets: Performance Implications of Competitive Aggressiveness

“…Size, measured with the natural logarithm of the number of employees in 2010 (Liang et al 2012); the degree of control of the funder family (FAMILY), usually quite high in Italy (in particular in small and medium enterprises), measured by the proportion of managers with a family relationship with the founder's family:\10 % (1), between 10 and 30 % (2), between 30 and 50 % (3), between 50 and 70 % (4), [70 % (5); the firm's affiliation to a group (Khanna and Palepu 1997), measured with a dummy equal to 1 if the firm belongs to a group and 0 otherwise; the firm's level of internationalization, measured with foreign sales to total sales (FSTS); and experience in foreign markets (EXPEABROAD), measured with the natural logarithm of the number of years since the firm began operating abroad (Herrmann and Datta, 2006).…”

“…On the one hand, emerging markets play pivotal roles in the strategies of firms based in developed markets, which are setting up sales activities to exploit the fast-growing demand from these countries. On the other hand, developed market-based firms entering developing countries face several overreaching challenges, such as the prevalence of institutional voids, uncertainty about the future market trends and performance outcomes of their other developed country-based rivals, as well as the threat from the new class of local rivals (Liang et al 2012;Tracey and Phillips 2011), which make these markets increasingly characterized by a fierce competition (Chen et al 2010). A deeper understanding of the performance implications of developed country-based firms' action aggressiveness in developing countries as well as of the forces that can shape this relationship is important both for firms that have entered these emerging markets only recently and for those that are increasingly relying on emerging markets to sustain their profits and revenues.…”