Journal Articles
This paper examines foreign direct investment (FDI) in the world. It includes entry strategies, ownership structure and other characteristics, and deals with the Chinese MNEs. China is now the home of large firms that are classified as the multinational enterprises (MNEs). MNEs are defined as the firms that have foreign sales and productions. China emerged as the largest investor in the world. The Literature of the international business examines the expansion phase of the MNEs. The year 2001 saw 16 Chinese firms being included in the world’s largest companies; by 2004, in a list of 500 world’s largest companies, 16 were Chinese firms. This chain did not break as China has become one of the most prominent investors in the world.
Prange, C. and Zhao, Y. (2018) Strategies for internationalisation: How Chinese SMEs deal with distance and market entry speed. In: Dominguez, N. and Mayrhofer, U. (Ed.) Key success factors of SME internationalisation: A cross-country perspective (International Business and Management, Vol. 34), Emerald Publishing Limited, pp. 205–224. (This content may be behind a paywall)
This chapter investigates internationalisation strategies of small and medium-sized companies (SMEs) in China. We highlight the specific challenges that Chinese SMEs encounter when selecting international country markets in terms of distance and entry speed. The authors adopt an ambidexterity perspective that differs from traditional explanations of internationalization behaviour by highlighting the need to balance seemingly disparate options for international expansion. Three cases provide an illustration of how Chinese companies combine distant with proximate market entries and slow with accelerated entry speed. The authors highlight how these strategies can drive and enhance international aspirations of Chinese SMEs.
The geopolitical context, which emerged from the collapse of the Soviet Union and the end of the Cold War, combined with Korea’s growing economic prowess, enabled greater dynamism and diversification in the Seoul’s foreign policy-making process. Growing pressure from energy-intensive economies coupled with new developments and investment in logistics and infrastructure has brought different parts of the Eurasian landmass closer together in recent years. Inter-Asian connections are especially growing. This article uses the case of deepening relations between Korea and the post-Soviet Central Asian republics as a vantage point to reflect on one such example of unfolding Asian inter-connectedness. In addition it sees Seoul’s engagement in the region as a fitting example of Korea’s broader ambitions to assert itself as a global economic player. The article shows that Korea’s policy towards Central Asia has been primarily driven by energy needs and is defined by pragmatism. It finds that the economic dimension of the relationship has greatly overshadowed other aspects such as politics and security. In its pursuit of closer ties with the region, Seoul has sought to turn structural weaknesses into added values and has attempted to develop a distinctive, non-threatening profile built around the lack of a political baggage and geopolitical ambitions, and the desire to share its experience of formerly impoverished turned leading economy. In turn, Central Asia’s selective integration in the world economy has continued, also thanks to its ties with Korea. The Central Asian republics welcomed the opportunity to diversify their foreign relations, the sources of foreign investment and export routes. At the same time, the opaque business environment, a leadership succession, which cannot be postponed for much longer, and Seoul’s ‘no-strings attached’ approach expose Korea to some risks, as regime stability might not last forever.
Mao Y, Norkaew O and Liu Y (2020) Parent-firm advantages and management control effects on subsidiary performance in emerging economies: a study of foreign direct investment in Thailand, Asia Pacific Business Review. (This content may be behind a paywall).
This paper empirically investigates how parent management control and firm-specific advantages (FSAs) influence subsidiary performance in Thailand. We find that parent management control has a mediating effect on the influence of political risks and subsidiary goals on subsidiary performance for emerging market multinationals, whereas for developed country multinationals, it only shows a mediating effect on the influence of subsidiary goals on subsidiary performance. We also find that the FSAs of parent firms located in developed countries moderate and mediate the effect of parent management control on subsidiary performance.