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|Title: ||The internationalisation of Chinese firms: determinants and the influence of dynamic capabilities and institutions on the post-internationalisation performance|
|Authors: ||Gao, Lan|
|Keywords: ||Chinese OFDI|
|Issue Date: ||2011|
|Publisher: ||© Lan Gao|
|Abstract: ||This thesis examines the rising phenomenon of the internationalisation of
Chinese firms, and aims to shed new light on our understanding of the
emergence of firms from emerging economies in the global market. It consists
of two parts: the country level study and the firm level. The former identifies
the domestic and locational determinants of Chinese outward foreign direct
investment (OFDI), while the latter examines the influence of dynamic
capabilities and institutions on the post-internationalisation performance of
Chinese firms, with a focus on state-owned enterprises (SOEs).
To explore the domestic and locational determinants of Chinese OFDI, the
thesis integrates network theory with the traditional explanations of OFDI, the
investment development path and the eclectic paradigm. By doing so, a new
factor, human mobility, is identified as one of the important domestic and
locational determinants of Chinese OFDI. Drawing upon a time series data
analysis for the period 1979-2007, this study confirms that Chinese OFDI is
driven by its domestic economic development, human mobility and knowledge
development and accumulation, and it has a substitute relationship with
exports. By examining Chinese OFDI flows to 13 OECD countries over the
period 1999-2007, it is shown that human mobility, the strategic assets of the
host country, foreign direct investment to China and cultural distance have a
positive impact on the locational choice of Chinese OFDI to OECD countries.
To investigate the influence of dynamic capabilities and institutions on the
post-internationalisation performance of Chinese firms, this study integrates
the dynamic capability framework and the institution-based view, and embeds
the analysis in a multi-perspective conceptual framework. It draws on four
case studies of Chinese SOEs. The analysis shows the importance of internal
dynamic capabilities in achieving overseas success when dealing with
changing environments. The managerial mindset has a moderate effect on
the impact of dynamic capabilities on post-internationalisation performance.
The case analysis also shows how the external institutional environment of
both host and home countries influence the performance of Chinese SOEs.
Support from both host and home country governments, unsurprisingly, has a
positive influence on performance. However, too much intervention from the
home country government imposes constraints on the firms and reduces their
willingness to commit to internationalisation.
This thesis makes a number of contributions to the existing literature. First, it
provides a better understanding of the overall picture of Chinese OFDI from
the macro perspective. The findings also contribute to our understanding of
the rise of OFDI from emerging economies in general and from China in
particular. Second, a new factor, human mobility, is identified and proved to
be significant in determining Chinese OFDI. In this era of globalisation, human
mobility has become the driving force of OFDI from emerging economies.
Third, a first step is taken towards exploring the influence of both internal and
external factors on the post-internationalisation performance of Chinese firms.
In order to achieve overseas success, not only do Chinese firms need to
improve their internal dynamic capabilities, but also attention needs to be paid
to the external institutional environment, which has a significant impact on the
performance of Chinese firms pursuing overseas success.|
|Description: ||A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.|
|Appears in Collections:||PhD Theses (Business School)|
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