Outward investment by Chinese MNCs: Motivations and implications

Deng, Ping

doi:10.1016/s0007-6813(04)00023-0

Cited by 353 publications

(300 citation statements)

References 6 publications

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“…It supports knowledge integration for firms operating in multiple markets and increases their level of absorptive capacity in understanding and adapting to international market opportunities (Lu, Liu & Wang, 2011;Yiu, Lau & Bruton, 2007). For example, strong domestic-based technological know-how has enabled Chinese firms like Midea (a leading manufacturer of refrigerators, air 9 conditioners, washing machines and other white goods), Ningbo Bird (a leading manufacturer of mobile phones) and Wanxiang (a leading manufacturer of auto parts) to absorb superior technologies from international industry leaders (Deng, 2004(Deng, , 2007Lin, 2010). Thus, we hypothesise:…”

Section: Resource-based View (Rbv)mentioning

confidence: 99%

“…The literature has repeatedly stressed, for example, the role of a supportive policy by the government (e.g. Child & Rodrigues, 2005;Deng, 2004Deng, , 2009Luo, Xue & Han, 2010;Voss, Buckley & Cross, 2010). Since China's formulation of the 'Go Global' policy, central and provincial governments have perceived OFDI positively and actively attempted to provide an institutional environment that enables Chinese firms to engage in OFDI.…”

Section: Institutional Theory (It)mentioning

confidence: 99%

“…This indicates that industry associations and intermediary organisations play an important role in POEs' strategic decision to expand to OFDI. Existing literature has established that in China, governments and industry associations and intermediary organisations play a crucial role in shaping China's OFDI (Buckley et al, 2008;Cui & Jiang, 2010;Deng, 2004;Yiu et al, 2007). The government sets up the outward FDI directive and encourages specific investments to promote exports, to improve firms' capability in terms of technology and R&D activities and to create internationally-recognized brands.…”

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confidence: 99%

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

Wei¹,

Zheng²,

Liu³

et al. 2014

International Business Review

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This research examines the factors determining whether or not exporting firms expand to outward foreign direct investment (OFDI) as part of their internationalisation strategy, using a recent survey of Chinese private-owned enterprises. We carry out a multidimensional analysis to investigate the impact of firm productivity, internal resources and the external environment on OFDI decisions, including both the decision to undertake OFDI and the volume of OFDI flows. It is found that productivity, technology-based capability, export experience, industry entry barriers, subnational institutions and intermediary institutional support affect firms' OFDI decisions. The findings have important policy and managerial implications.Key words: OFDI, Chinese private-owned enterprises, productivity, heterogeneity theory, the integrated 'strategic tripod' framework. 1 We are grateful for the valuable comments and suggestions of three referees. 2 We thank one of the referees for suggesting the term 'entry mode transformation'.

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Section: Resource-based View (Rbv)mentioning

confidence: 99%

Section: Institutional Theory (It)mentioning

confidence: 99%

mentioning

confidence: 99%

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

Wei¹,

Zheng²,

Liu³

et al. 2014

International Business Review

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“…The result has been a preponderance of descriptive research on FDI trends (e.g. Buckley et al, 2006;Deng, 2003Deng, , 2004Taylor, 2002;Wong and Chan, 2003) coupled with in-depth case studies on a small number of high-profile Chinese MNEs (e.g. Liu and Li, 2002;Warner et al, 2004).…”

Section: Introductionmentioning

confidence: 99%

The Determinants of Chinese Outward Foreign Direct Investment

Buckley

Clegg

Cross

et al. 2010

Foreign Direct Investment, China and the World Economy

736

1,753

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This study investigates the determinants of Chinese outward direct investment (ODI) and the extent to which three special explanations (capital market imperfections, special ownership advantages and institutional factors) need to be nested within the general theory of the multinational firm. We test our hypotheses using official Chinese ODI data collected between 1984 and 2001. We find Chinese ODI to be associated with high levels of political risk in, and cultural proximity to, host countries throughout, and with host market size and geographic proximity (1984 to 1991) and host natural resources endowments (1992 to 2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese MNEs.

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“…Further push factors were the inadequate distribution and logistics networks and regional protectionism in domestic markets, which became highly competitive and saturated in some sectors, especially after China's accession to the World Trade Organization (WTO) in 2001 (Sauvant 2005;Zeng and Williamson 2007;Boisot and Meyer 2008). Market seeking investment behaviour has seen Chinese firms increasingly invest, for example, in developing countries across Asia and Africa (Pangarkar and Yuan 2009;Deng 2004;Zhan 1995) also highlight asset-seeking strategies as important drivers for Chinese OFDI in developed countries. This is reflected in, inter alia, acquisitions and the establishment of R&D affiliates in Europe.…”

Section: Introductionmentioning

confidence: 99%

Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals

Buckley

2017

Manag Int Rev

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The rise of multinational enterprises from emerging countries (EMNEs) poses an important test for theories of the multinational enterprise such as internalisation theory. It has been contended that new phenomena need new theory. This paper proposes that internalisation theory is appropriate to analyse EMNEs. This paper examines four approaches to EMNEs-international investment strategies, domestic market imperfections, international corporate networks and domestic institutions-and three case studies-Chinese outward FDI, Indian foreign acquisitions and investment in tax havens-to show the enduring relevance and predictive power of internalisation theory. This analysis encompasses many other approaches as special cases of internalisation theory. The use of internalisation theory to analyse EMNEs is to be commended, not only because of its theoretical inclusivity, but also because it has the ability to connect and to explain seemingly desperate phenomena.

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Outward investment by Chinese MNCs: Motivations and implications

Cited by 353 publications

References 6 publications

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

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

The Determinants of Chinese Outward Foreign Direct Investment

Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals

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