Overcoming Distrust: How State-Owned Enterprises Adapt their Foreign Entries to Institutional Pressures Abroad

Meyer, Klaus E.; Ding, Yuan; Li, Jing; Zhang, Hua

doi:10.1007/978-3-319-51715-5_9

Cited by 120 publications

(222 citation statements)

References 75 publications

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“…These include research on the driving forces of Chinese outward foreign direct investment (OFDI) Erdener & Shapiro, 2005;Liu, Buck, & Shu, 2005;Luo & Wang, 2012); entry mode strategy (Cui & Jiang, 2010Meyer, Ding, Li, & Zhang, 2014); cross-border mergers and acquisitions (M&As) (Deng, 2009;Sun, Peng, Ren, & Yan, 2012); and China's home country institutions (Luo, Xue, & Han, 2010;Lu, Liu, Wright, & Filatotchev, 2014;Wang, Hong, Kafouros, & Wright, 2012).…”

Section: Introductionmentioning

confidence: 99%

Rethinking the Literature on the Performance of Chinese Multinational Enterprises

2016

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We synthesize the literature on Chinese multinational enterprises (MNEs) and find that much of the prior research is based on as few as a dozen case studies of Chinese firms. They are so casespecific that it has led to a misplaced call for new theories to explain Chinese firms' internationalization. In an attempt to better relate theory with empirical evidence, we examine the largest 500 Chinese manufacturing firms. We aim to find out the number of Chinese manufacturing firms to be true MNEs by definition, and to examine their financial performance relative to global peers using the financial benchmarking method. We develop our theoretical perspectives from new internalization theory. We find that there are only 49 Chinese manufacturing firms to be true MNEs, whereas the rest is purely domestic firms. Their performance is poor relative to global peers. Chinese MNEs have home country bound firmspecific advantages (FSAs), which are built upon home country-specific advantages (home CSAs). They have not yet developed advanced management capabilities through recombination with host CSAs. Essentially, they acquire foreign firms to increase their sales in domestic market, but they fail to be competitive internationally and to achieve superior performance in overseas operations. Our findings have important strategic implications for managers, public policy makers, and academic research.

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Section: Introductionmentioning

confidence: 99%

Rethinking the Literature on the Performance of Chinese Multinational Enterprises

2016

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“…However, there are still very few empirical studies focusing specifically on the choice of establishment mode by Chinese MNEs. Meyer et al (2014) did indeed study establishment mode choice of Chinese MNEs, but only in terms of the influence exerted by the host country's institutional and technological environment when it comes to choosing between acquisitions and greenfield subsidiaries.…”

Section: Discussionmentioning

confidence: 99%

“…In spite of this, empirical evidence on the impact of state ownership on establishment mode choice is still scarce. In this sense, Meyer et al (2014) found that state-owned Chinese companies have a stronger preference towards acquisitions instead of greenfield investments, although this preference is weaker in countries with higher institutional and technological development levels. Since this study only analyses one destination country, state or private ownership was just considered as a control, dichotomous variable: value (1) is assigned to state-owned Chinese companies; (0) is for private-owned companies (Cui and Jiang 2012;Duanmu 2012;Meyer et al 2014).…”

Section: Control Variablesmentioning

confidence: 97%

“…The dependent variable in this study is the establishment mode chosen by Chinese companies to engage in business in Spain. This is a dichotomous variable where (1) stands for Chinese companies who have conducted acquisitions in Spain, and (0) otherwise, i.e., meaning that the company has decided to set up a greenfield subsidiary (Hennart and Park 1993;Brouthers and Brouthers 2000;Harzing 2002;Larimo 2003;Slangen and Hennart 2008;Rienda et al 2013;Meyer et al 2014). Using the criteria set forth by Barkema and Vermeulen (1998) and Brouthers and Hennart (2007), joint ventures are classified as greenfield investments.…”

Section: Dependent Variablementioning

confidence: 99%

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Chinese multinationals in Spain: Determinants of establishment mode choice

2017

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“…The first studies were conducted in the 1970 s [Mazzolini, 1979;Vernon, 1979]. The current literature research focus is on Chinese MNEs [Chen and Young, 2010;Cui and Jiang, 2012;Duanmu, 2014;Liang et al, 2014;Meyer et al, 2014;Morck et al, 2008;Pan et al, 2014;Ramasamy et al, 2012;Wang et al, 2012;Zhang et al, 2010]. Only a few papers highlight SOE internationalization issues in other national economies, such as Spain [Garcia-Canal and Guillen, 2008], Norway [Knutsen et al, 2011] or India [Choudhury and Khanna, 2014].…”

Section: Internationalization By Soe Academic Literature Reviewmentioning

confidence: 99%

Internationalization by State-owned Enterprises (SOEs) and Sovereign Wealth Funds (SWFs) after the 2008 Crisis. Looking for Generalizations

Götz

Jankowska

2016

International Journal of Management and Economics

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This paper seeks to detect (post) crisis tendencies in the international activities of state-owned enterprises (SOE) and sovereign wealth funds (SWF) and identify the main challenges posed in exploring this topic. In doing so it draws on the inductive approach and qualitative method and discusses available studies on recent internalization trends in SOEs and SWFs. The number of SWFs worldwide has been rising since 2008, despite the 2008 crisis which brought heavy losses and negative publicity that caused a rerouting of funds towards domestic purposes. The long-term perspective adopted by SWFs is expected to make less vulnerable to financial market volatility, which should stimulate FDI. SOTNCs are a minority among SOEs in general, i.e. only a fraction of SOEs worldwide can be labeled as state-owned transnational companies; and no exceptional impact of the 2008 crisis is apparent in their functioning The review of selected literature and UNCTAD survey reports is the basis for our conclusions and suggestions for future research avenues.

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Overcoming Distrust: How State-Owned Enterprises Adapt their Foreign Entries to Institutional Pressures Abroad

Cited by 120 publications

References 75 publications

Rethinking the Literature on the Performance of Chinese Multinational Enterprises

Rethinking the Literature on the Performance of Chinese Multinational Enterprises

Chinese multinationals in Spain: Determinants of establishment mode choice

Internationalization by State-owned Enterprises (SOEs) and Sovereign Wealth Funds (SWFs) after the 2008 Crisis. Looking for Generalizations

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