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Chinese Outward Foreign Direct Investment
The rapid international expansion of Chinese businesses has evoked mixed perceptions in host countries and among policymakers. This volume brings together rigorous studies on the motivation, background, strategy, and impact of Chinese outward foreign direct investment and the emergence of Chinese multinational enterprises (MNEs). It is thus informative for the next wave of academic research on Chinese and emerging market MNEs in international business, political economy, economic geography and political sciences. Together with an original introduction by the editors, this valuable collection provides an important backdrop for academics who intend to understand emerging market MNEs in order to advise policymakers.
More Information
Critical Acclaim
Contributors
Contents
More Information
The rapid international expansion of Chinese businesses has evoked mixed perceptions in host countries and among policymakers. This volume brings together rigorous studies on the motivation, background, strategy, and impact of Chinese outward foreign direct investment and the emergence of Chinese multinational enterprises (MNEs). It is thus informative for the next wave of academic research on Chinese and emerging market MNEs in international business, political economy, economic geography and political sciences. Together with an original introduction by the editors, this valuable collection provides an important backdrop for academics who intend to understand emerging market MNEs in order to advise policymakers.
Critical Acclaim
‘Chinese Outward Foreign Direct Investment by Peter J. Buckley and Hinrich Voss provides a comprehensive collection of some of the leading academic articles published on Chinese multinationals. This wonderful collection helps clarify the current state of the art on studies of Chinese multinationals and offers a useful introduction for researchers interested in gaining a deep understanding of the topic.''
– Alvaro Cuervo-Cazurra, Northeastern University, US
– Alvaro Cuervo-Cazurra, Northeastern University, US
Contributors
43 articles, dating from 1992 to 2015
Contributors include: J. Child, S. Globerman, L. Ji, J. Knoerich, K.E. Meyer, D. Sutherland, M.Y. Wang, M.A. Witt, J. Xia, S. Young
Contributors include: J. Child, S. Globerman, L. Ji, J. Knoerich, K.E. Meyer, D. Sutherland, M.Y. Wang, M.A. Witt, J. Xia, S. Young
Contents
Contents
Introduction
Peter J. Buckley and Hinrich Voss
PART I THEORY
1. John Child and Suzana B. Rodrigues (2005), ‘The Internationalization of Chinese Firms: A Case for Theoretical Extension?’, Management and Organization Review, 1 (3), November, 381–410
2. Peter Ping Li (2007), ’Toward an Integrated Theory of Multinational Evolution: The Evidence of Chinese Multinational Enterprises as Latecomers’, Journal of International Management, 13 (3), September, 296–318
3. Max Boisot and Marshall W. Meyer (2008), ‘Which Way through the Open Door? Reflections on the Internationalization of Chinese Firms’, Management and Organization Review, 4 (3), November, 349–65
4. Daphne W. Yiu (2011), ‘Multinational Advantages of Chinese Business Groups: A Theoretical Explanation’, Management and Organization Review, 7 (2), July, 249–77
5. Mike W. Peng (2012), ‘The Global Strategy of Emerging Multinationals from China’, Global Strategy Journal, 2 (2), May, 97–107
6. Peter J. Buckley, Dylan Sutherland, Hinrich Voss and Ahmad El-Gohari (2015), ‘The Economic Geography of Offshore Incorporation in Tax Havens and Offshore Financial Centres: The Case of Chinese MNEs’, Journal of Economic Geography, 15 (1), January, 103–28
PART II PIONEERING STUDIES
7. Ye Gang (1992), ‘Chinese Transnational Corporations’, Transnational Corporations, 1 (2), August, 125–33
8. Francis M. Ulgado, Chwo-Ming J. Yu and Anant R. Negandhi (1994), ‘Multinational Enterprises from Asian Developing Countries: Management and Organizational Characteristics’, International Business Review, 3 (2), June, 123–33
9. James Xiaoning Zhan (1995), ‘Transnationalization and Outward Investment: The Case of Chinese Firms’, Transnational Corporations, 4 (3), December, 67–100
10. Stephen Young, Chun-Hua Huang and Michael McDermott (1996), ‘Internationalization and Competitive Catch-Up Processes: Case Study Evidence on Chinese Multinational Enterprises’, Management International Review, 36 (4), 4th Quarter, 295–314
11. Stephen Young, Neil Hood and Tong Lu (1998), ‘International Development by Chinese Enterprises: Key Issues for the Future’, Long Range Planning, 31 (6), December, 886–93
12. Mark Yaolin Wang (2002), ‘The Motivations behind China’s Government-Initiated Industrial Investment Overseas’, Pacific Affairs, 75 (2), Summer, 187–206
PART III EMPIRICAL STUDIES
13. Peter J. Buckley, L. Jeremy Clegg, Adam R. Cross, Xin Liu, Hinrich Voss and Ping Zheng (2007), ‘The Determinants of Chinese Outward Foreign Direct Investment’, Journal of International Business Studies, 38 (4), July, 499–518
14. Xiaming Liu, Wen Xiao and Xianhai Huang (2008), ‘Bounded Entrepreneurship and Internationalisation of Indigenous Chinese Private-Owned Firms’, International Business Review, 17 (4), August, 488–508
15. Jing-Lin Duanmu (2012), ‘Firm Heterogeneity and Location Choice of Chinese Multinational Enterprises (MNEs)’, Journal of World Business, 47 (1), January, 64–72
16. Andreas Klossek, Bernd Michael Linke and Michael Nippa (2012), ‘Chinese Enterprises in Germany: Establishment Modes and Strategies to Mitigate the Liability of Foreignness’, Journal of World Business, 47 (1), January, 35–44
17. Jan Knoerich (2010), ‘Gaining from the Global Ambitions of Emerging Economy Enterprises: An Analysis of the Decision to Sell a German Firm to a Chinese Acquirer‘, Journal of International Management, 16 (2), June, 177–91
18. Xiaoya Liang, Xiongwen Lu and Lihua Wang (2012), ‘Outward Internationalization of Private Enterprises in China: The Effect of Competitive Advantages and Disadvantages Compared to Home Market Rivals’, Journal of World Business, 47 (1), January, 134–44
19. Lin Cui, Klaus E. Meyer and Helen Wei Hu (2014), ‘What Drives Firms’ Intent to Seek Strategic Assets by Foreign Direct Investment? A Study of Emerging Economy Firms’, Journal of World Business, 49 (4), October, 488–501
20. Jun Xia, Xufei Ma, Jane W. Lu and Daphne W. Yiu (2014), ‘Outward Foreign Direct Investment by Emerging Market Firms: A Resource Dependence Logic’, Strategic Management Journal, 35 (9), September, 1343–63
PART IV DATA
21. Dylan Sutherland and John Anderson (2015), ‘The Pitfalls of Using Foreign Direct Investment Data to Measure Chinese Multinational Enterprise Activity’, China Quarterly, 221, March, 21–48
PART V INSTITUTIONS AND OFDI
22. Kevin G. Cai (1999), ‘Outward Foreign Direct Investment: A Novel Dimension of China’s Integration into the Regional and Global Economy’, China Quarterly, 160, December, 856–80
23. Malcolm Warner, Ng Sek Hong and Xu Xiaojun (2004), ‘”Late Development” Experience and the Evolution of Transnational Firms in the People’s Republic of China’, Asia Pacific Business Review, 10 (3–4), Spring–Summer, 324–45
24. Eunsuk Hong and Laixiang Sun (2006), ‘Dynamics of Internationalization and Outward Investment: Chinese Corporations’ Strategies’, China Quarterly, 187, September, 610–34
25. Michael A. Witt and Arie Y. Lewin (2007), ‘Outward Foreign Direct Investment as Escape Response to Home Country Institutional Constraints’, Journal of International Business Studies, 38 (4), July, 579–94
26. Randall Morck, Bernard Yeung and Minyuan Zhao (2008), ‘Perspectives on China’s Outward Foreign Direct Investment’, Journal of International Business Studies, 39 (3), April, 337–50
27. Steven Globerman and Daniel Shapiro (2009), ‘Economic and Strategic Considerations Surrounding Chinese FDI in the United States’, Asia Pacific Journal of Management, 26 (1), March, 163–83
28. Yadong Luo, Qiuzhi Xue and Binjie Han (2010), ‘How Emerging Market Governments Promote Outward FDI: Experience from China’, Journal of World Business, 45 (1), January, 68–79
29. Hinrich Voss, Peter J. Buckley and Adam R. Cross (2010), ‘The Impact of Home Country Institutional Effects on the Internationalization Strategy of Chinese Firms’, Multinational Business Review, 18 (3), 25–48
30. Chengqi Wang, Junjie Hong, Mario Kafouros and Mike Wright (2012), ‘Exploring the Role of Government Involvement in Outward FDI from Emerging Economies’, Journal of International Business Studies, 43 (7), September, 655–76
31. Alan M. Rugman, Quyen T. K. Nguyen and Ziyi Wei (2014), ‘Chinese Multinationals and Public Policy’, International Journal of Emerging Markets, 9 (2), 205–15
32. Jiangyong Lu, Xiaohui Liu, Mike Wright and Igor Filatotchev (2014), ‘International Experience and FDI Location Choices of Chinese Firms: The Moderating Effects of Home Country Government Support and Host Country Institutions’, Journal of International Business Studies, 45 (4), May, 428–49
PART VI THE SOE
33. Lin Cui and Fuming Jiang (2012), ‘State Ownership Effect on Firms’ FDI Ownership Decisions under Institutional Pressure: A Study of Chinese Outward-Investing Firms’, Journal of International Business Studies, 43 (3), April, 264–84
34. Jing Li, Aloysius Newenham-Kahindi, Daniel M. Shapiro and Victor Z. Chen (2013), ‘The Two-Tier Bargaining Model Revisited: Theory and Evidence from China’s Natural Resource Investments in Africa’, Global Strategy Journal, 3 (4), November, 300–21
35. Klaus E. Meyer, Yuan Ding, Jing Li and Hua Zhang (2014), ‘Overcoming Distrust: How State-Owned Enterprises Adapt their Foreign Entries to Institutional Pressures Abroad’, Journal of International Business Studies, 45 (8), October, 1005–28
36. Ming Hua Li, Lin Cui and Jiangyong Lu (2014), ‘Varieties in State Capitalism: Outward FDI Strategies of Central and Local State-Owned Enterprises from Emerging Economy Countries’, Journal of International Business Studies, 45 (8), October, 980–1004
37. Hao Liang, Bing Ren and Sunny Li Sun (2015), ‘An Anatomy of State Control in the Globalization of State-Owned Enterprises’, Journal of International Business Studies, 46 (2), 223–40
PART VII CASES
38. Hong Liu and Kequan Li (2002), ‘Strategic Implications of Emerging Chinese Multinationals: The Haier Case Study’, European Management Journal, 20 (6), December, 699–706
39. Yuping Du (2003), ‘Haier’s Survival Strategy to Compete with World Giants’, Journal of Chinese Economic and Business Studies, 1 (2), 259–66
40. Federico Bonaglia, Andrea Goldstein and John A. Mathews (2007), ‘Accelerated Internationalization by Emerging Markets’ Multinationals: The Case of the White Goods Sector’, Journal of World Business, 42 (4), December, 369–83
41. Geert Duysters, Jojo Jacob, Charmianne Lemmens and Yu Jintian (2009), ‘Internationalization and Technological Catching Up of Emerging Multinationals: A Comparative Case Study of China’s Haier Group’, Industrial and Corporate Change, 18 (2), April, 325–49
42. Sunny Li Sun (2009), ‘Internationalization Strategy of MNEs from Emerging Economies: The Case of Huawei’, Multinational Business Review, 17 (2), 129–55
43. Friedrich Wu, Lim Siok Hoon and Zhang Yuzhu (2011), ‘Dos and Don’ts for Chinese Companies Investing in the United States: Lessons from Huawei and Haier’, Thunderbird International Business Review, 53 (4), July–August, 501–15
Index
Introduction
Peter J. Buckley and Hinrich Voss
PART I THEORY
1. John Child and Suzana B. Rodrigues (2005), ‘The Internationalization of Chinese Firms: A Case for Theoretical Extension?’, Management and Organization Review, 1 (3), November, 381–410
2. Peter Ping Li (2007), ’Toward an Integrated Theory of Multinational Evolution: The Evidence of Chinese Multinational Enterprises as Latecomers’, Journal of International Management, 13 (3), September, 296–318
3. Max Boisot and Marshall W. Meyer (2008), ‘Which Way through the Open Door? Reflections on the Internationalization of Chinese Firms’, Management and Organization Review, 4 (3), November, 349–65
4. Daphne W. Yiu (2011), ‘Multinational Advantages of Chinese Business Groups: A Theoretical Explanation’, Management and Organization Review, 7 (2), July, 249–77
5. Mike W. Peng (2012), ‘The Global Strategy of Emerging Multinationals from China’, Global Strategy Journal, 2 (2), May, 97–107
6. Peter J. Buckley, Dylan Sutherland, Hinrich Voss and Ahmad El-Gohari (2015), ‘The Economic Geography of Offshore Incorporation in Tax Havens and Offshore Financial Centres: The Case of Chinese MNEs’, Journal of Economic Geography, 15 (1), January, 103–28
PART II PIONEERING STUDIES
7. Ye Gang (1992), ‘Chinese Transnational Corporations’, Transnational Corporations, 1 (2), August, 125–33
8. Francis M. Ulgado, Chwo-Ming J. Yu and Anant R. Negandhi (1994), ‘Multinational Enterprises from Asian Developing Countries: Management and Organizational Characteristics’, International Business Review, 3 (2), June, 123–33
9. James Xiaoning Zhan (1995), ‘Transnationalization and Outward Investment: The Case of Chinese Firms’, Transnational Corporations, 4 (3), December, 67–100
10. Stephen Young, Chun-Hua Huang and Michael McDermott (1996), ‘Internationalization and Competitive Catch-Up Processes: Case Study Evidence on Chinese Multinational Enterprises’, Management International Review, 36 (4), 4th Quarter, 295–314
11. Stephen Young, Neil Hood and Tong Lu (1998), ‘International Development by Chinese Enterprises: Key Issues for the Future’, Long Range Planning, 31 (6), December, 886–93
12. Mark Yaolin Wang (2002), ‘The Motivations behind China’s Government-Initiated Industrial Investment Overseas’, Pacific Affairs, 75 (2), Summer, 187–206
PART III EMPIRICAL STUDIES
13. Peter J. Buckley, L. Jeremy Clegg, Adam R. Cross, Xin Liu, Hinrich Voss and Ping Zheng (2007), ‘The Determinants of Chinese Outward Foreign Direct Investment’, Journal of International Business Studies, 38 (4), July, 499–518
14. Xiaming Liu, Wen Xiao and Xianhai Huang (2008), ‘Bounded Entrepreneurship and Internationalisation of Indigenous Chinese Private-Owned Firms’, International Business Review, 17 (4), August, 488–508
15. Jing-Lin Duanmu (2012), ‘Firm Heterogeneity and Location Choice of Chinese Multinational Enterprises (MNEs)’, Journal of World Business, 47 (1), January, 64–72
16. Andreas Klossek, Bernd Michael Linke and Michael Nippa (2012), ‘Chinese Enterprises in Germany: Establishment Modes and Strategies to Mitigate the Liability of Foreignness’, Journal of World Business, 47 (1), January, 35–44
17. Jan Knoerich (2010), ‘Gaining from the Global Ambitions of Emerging Economy Enterprises: An Analysis of the Decision to Sell a German Firm to a Chinese Acquirer‘, Journal of International Management, 16 (2), June, 177–91
18. Xiaoya Liang, Xiongwen Lu and Lihua Wang (2012), ‘Outward Internationalization of Private Enterprises in China: The Effect of Competitive Advantages and Disadvantages Compared to Home Market Rivals’, Journal of World Business, 47 (1), January, 134–44
19. Lin Cui, Klaus E. Meyer and Helen Wei Hu (2014), ‘What Drives Firms’ Intent to Seek Strategic Assets by Foreign Direct Investment? A Study of Emerging Economy Firms’, Journal of World Business, 49 (4), October, 488–501
20. Jun Xia, Xufei Ma, Jane W. Lu and Daphne W. Yiu (2014), ‘Outward Foreign Direct Investment by Emerging Market Firms: A Resource Dependence Logic’, Strategic Management Journal, 35 (9), September, 1343–63
PART IV DATA
21. Dylan Sutherland and John Anderson (2015), ‘The Pitfalls of Using Foreign Direct Investment Data to Measure Chinese Multinational Enterprise Activity’, China Quarterly, 221, March, 21–48
PART V INSTITUTIONS AND OFDI
22. Kevin G. Cai (1999), ‘Outward Foreign Direct Investment: A Novel Dimension of China’s Integration into the Regional and Global Economy’, China Quarterly, 160, December, 856–80
23. Malcolm Warner, Ng Sek Hong and Xu Xiaojun (2004), ‘”Late Development” Experience and the Evolution of Transnational Firms in the People’s Republic of China’, Asia Pacific Business Review, 10 (3–4), Spring–Summer, 324–45
24. Eunsuk Hong and Laixiang Sun (2006), ‘Dynamics of Internationalization and Outward Investment: Chinese Corporations’ Strategies’, China Quarterly, 187, September, 610–34
25. Michael A. Witt and Arie Y. Lewin (2007), ‘Outward Foreign Direct Investment as Escape Response to Home Country Institutional Constraints’, Journal of International Business Studies, 38 (4), July, 579–94
26. Randall Morck, Bernard Yeung and Minyuan Zhao (2008), ‘Perspectives on China’s Outward Foreign Direct Investment’, Journal of International Business Studies, 39 (3), April, 337–50
27. Steven Globerman and Daniel Shapiro (2009), ‘Economic and Strategic Considerations Surrounding Chinese FDI in the United States’, Asia Pacific Journal of Management, 26 (1), March, 163–83
28. Yadong Luo, Qiuzhi Xue and Binjie Han (2010), ‘How Emerging Market Governments Promote Outward FDI: Experience from China’, Journal of World Business, 45 (1), January, 68–79
29. Hinrich Voss, Peter J. Buckley and Adam R. Cross (2010), ‘The Impact of Home Country Institutional Effects on the Internationalization Strategy of Chinese Firms’, Multinational Business Review, 18 (3), 25–48
30. Chengqi Wang, Junjie Hong, Mario Kafouros and Mike Wright (2012), ‘Exploring the Role of Government Involvement in Outward FDI from Emerging Economies’, Journal of International Business Studies, 43 (7), September, 655–76
31. Alan M. Rugman, Quyen T. K. Nguyen and Ziyi Wei (2014), ‘Chinese Multinationals and Public Policy’, International Journal of Emerging Markets, 9 (2), 205–15
32. Jiangyong Lu, Xiaohui Liu, Mike Wright and Igor Filatotchev (2014), ‘International Experience and FDI Location Choices of Chinese Firms: The Moderating Effects of Home Country Government Support and Host Country Institutions’, Journal of International Business Studies, 45 (4), May, 428–49
PART VI THE SOE
33. Lin Cui and Fuming Jiang (2012), ‘State Ownership Effect on Firms’ FDI Ownership Decisions under Institutional Pressure: A Study of Chinese Outward-Investing Firms’, Journal of International Business Studies, 43 (3), April, 264–84
34. Jing Li, Aloysius Newenham-Kahindi, Daniel M. Shapiro and Victor Z. Chen (2013), ‘The Two-Tier Bargaining Model Revisited: Theory and Evidence from China’s Natural Resource Investments in Africa’, Global Strategy Journal, 3 (4), November, 300–21
35. Klaus E. Meyer, Yuan Ding, Jing Li and Hua Zhang (2014), ‘Overcoming Distrust: How State-Owned Enterprises Adapt their Foreign Entries to Institutional Pressures Abroad’, Journal of International Business Studies, 45 (8), October, 1005–28
36. Ming Hua Li, Lin Cui and Jiangyong Lu (2014), ‘Varieties in State Capitalism: Outward FDI Strategies of Central and Local State-Owned Enterprises from Emerging Economy Countries’, Journal of International Business Studies, 45 (8), October, 980–1004
37. Hao Liang, Bing Ren and Sunny Li Sun (2015), ‘An Anatomy of State Control in the Globalization of State-Owned Enterprises’, Journal of International Business Studies, 46 (2), 223–40
PART VII CASES
38. Hong Liu and Kequan Li (2002), ‘Strategic Implications of Emerging Chinese Multinationals: The Haier Case Study’, European Management Journal, 20 (6), December, 699–706
39. Yuping Du (2003), ‘Haier’s Survival Strategy to Compete with World Giants’, Journal of Chinese Economic and Business Studies, 1 (2), 259–66
40. Federico Bonaglia, Andrea Goldstein and John A. Mathews (2007), ‘Accelerated Internationalization by Emerging Markets’ Multinationals: The Case of the White Goods Sector’, Journal of World Business, 42 (4), December, 369–83
41. Geert Duysters, Jojo Jacob, Charmianne Lemmens and Yu Jintian (2009), ‘Internationalization and Technological Catching Up of Emerging Multinationals: A Comparative Case Study of China’s Haier Group’, Industrial and Corporate Change, 18 (2), April, 325–49
42. Sunny Li Sun (2009), ‘Internationalization Strategy of MNEs from Emerging Economies: The Case of Huawei’, Multinational Business Review, 17 (2), 129–55
43. Friedrich Wu, Lim Siok Hoon and Zhang Yuzhu (2011), ‘Dos and Don’ts for Chinese Companies Investing in the United States: Lessons from Huawei and Haier’, Thunderbird International Business Review, 53 (4), July–August, 501–15
Index
