Internationalization Paths of Chinese Firms: Evidences From an Emerging Economy

Zeng, Saixing; Shen, Qi; Tam, C. M.; Wan, Tianwei

doi:10.3846/jbem.2010.15

Cited by 10 publications

(8 citation statements)

References 38 publications

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“…In recent years, China has received substantial external capital inflows after having suffered capital or wealth flight for the previous 10 years [10]. A previous study has suggested that Chinese OFDI supports international finance [11]. Researchers in the international business and emerging market economies literature have predominantly used Chinese FDI data (cross-sectional and survey data) to map where Chinese investment is located and what drives Chinese investment in a particular region.…”

Section: Introductionmentioning

confidence: 99%

China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe

Lei

Ullah

et al. 2019

Sustainability

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For the last few years, the execution of the Belt and Road Initiative (hereinafter referred to as the BRI) and China’s outward foreign direct investment (hereinafter referred to as OFDI) in Europe have seen a significant upward trend. For our current paper, we collected empirical data pertaining to China’s OFDI and foreign trade (gathered from 21 European countries in the trade gravity market for the period 2003 to 2016) that yielded the following results: (a) China’s OFDI to Europe has significantly promoted international trade between China and European countries. On the other hand, OFDI has equally promoted China’s exports to European counties, while it has not encouraged China’s imports from European counties. (b) The Belt and Road Initiative has had a positive impact on China’s exports to European counties and has had a negative impact on China’s imports from European counties. (c) There have been both complementary trade impacts and substitution trade impacts when China has directly invested in European countries, but the complementary impact was much stronger than its substitution impact in the chosen sample period.

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Section: Introductionmentioning

confidence: 99%

China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe

Lei

Ullah

et al. 2019

Sustainability

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“…Internationalization strategies of developed banks have attracted a fair degree of research interest, but internationalization strategies of emerging banks remain largely underinvestigated (Aulakh, Kotabe, & Teegen, 2000;Zeng, Shen, Tam, & Wan, 2010). While banks from developed countries may face constraints to sustainable internationalization due to low levels of capital despite a positive market image, banks from emerging economies may, alternatively, suffer from a relatively negative image in international markets despite high levels of capital (Petrou, 2009).…”

Section: Chinese and Brazilian Banks In Switzerlandmentioning

confidence: 99%

Internationalization strategies of emerging market banks: Challenges and opportunities

2017

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The greatly improved economic fundamentals of the major emerging economies over the last decade have propelled several emerging banks into the ranks of the largest. Despite their importance in the global economy, the internationalization of emerging market banks remains an understudied phenomenon. This article examines factors that may internationalization strategies of emerging market banks in the private banking sector, both when going abroad (take-off) and upon arrival in a host country (landing). The private banking interest given its importance in many leading nancial centers around the crisis, several recent scandals, and a fast-changing regulatory environment. We highlight the internationalization strategies of two banks from emerging countries, China and Brazil, and their experience in traditional private banking sector. These two cases highlight factors that may successful internationalization such as prior industry experience, existing client base, entry strategy, ownership type, valuable implications for managers from other emerging economies by providing a better understanding of how emerging market banks expand internationally. Growing wealth in emerging marketsGlobal wealth continues to grow and to produce an increasingly large number of high net worth individuals (HNWIs), especially in emerging countries. A dramatic shift in global wealth distribution is currently taking place around the world, mainly in the Asianumber of HNWIs is growing faster than the rate of GDP in most countries. Many of these individuals are entrepreneurs who demand access to the same investments and services offered to their counterparts in developed countries. Some of this new wealth has found its way to the leading private banking centers around the world. Several well-capitalized and wellmanaged emerging banks are gradually entering a select group of major institutions in international private banking to claim their share of this lucrative sector, encouraged by the fact that more and more of the HNWI universe is composed of citizens and residents from emerging economies. This represents challenges and opportunities for both emerging market banks (EM-banks) and traditional banks.Banks must be prepared to handle increasingly sophisticated demands from this new emerging entrepreneurial class (including both personal and corporate clients). All major institutions in private banking aspire to provide a global range of products and services and to capture an increasing number of these valuable clients. An attractive option for large emerging banks is to internationalize and gain the necessary private banking knowledge abroad in order to assimilate useful business knowmanagement business who from any upgrade in a global brand and reputation).

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“…the institutional environment and industrial competition) may play important roles in explaining the internationalization behavior of firms (Casillas and Moreno-Menéndez, 2013;Chetty et al, 2014). A significant corpus of studies has shown that SOEs differ from traditional multinationals in that state ownership, political connections, and state control are the crucial factors encouraging SOEs to internationalize and compete against their counterparts in global markets (Cuervo-Cazurra et al, 2014;Hoskisson et al, 2013;Peng et al, 2008;Zeng et al, 2010;Zhu and Yoshikawa, 2015). The ways by which a government influences firms' international expansion include appointing executives (Cui and Jiang, 2012), providing valuable information and resources (Lin, 2011), offering various kinds of institutional support (Luo et al, 2010), and building positive connections with host-government entities (Li et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…In this study, we posit that the internationalization processes arise from an interaction of the dual objectives (economic and political) of the governments. Fortunately, the phenomena of emerging companies' internationalization are common (Bremmer, 2009;Zeng et al, 2010) and offer a favorable setting for testing our hypotheses. Specifically, we draw on the Chinese construction industry to examine why different SOEs differ in their paces and rhythms of internationalization, as well as in their location choices and product strategies for international expansion; this industry is a government-guided industry containing many involved SOEs with large variations of state capitalism.…”

Section: Introductionmentioning

confidence: 99%

Does state capitalism matter in firm internationalization? Pace, rhythm, location choice, and product diversity

Chen

Zeng

et al. 2016

Management Decision

Self Cite

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Purpose – The purpose of this paper is to investigate the direct effects of state capitalism on the internationalization behavior of state-owned enterprises (SOEs). Specifically, the authors focus on four distinct aspects of internationalization behavior; namely, pace of internationalization, rhythm of internationalization, location choice (developing countries vs developed countries), and diversity of product lines. Design/methodology/approach – The authors empirically test the hypotheses using data from Chinese construction companies during the period 2009-2015. The authors build a unique dataset by combining the data from ENR Top 225 International Contractors reports and the State Administration for Industry and Commerce of China information. Moreover, concerning the panel data structure and the potential for autocorrelation and heteroskedasticity, The authors use the feasible generalized least square panel model to test the hypotheses. Findings – The authors find that the level of state capitalism has a positive effect on SOEs’ rhythm of internationalization, while there is no significant relationship between the level of state capitalism and the pace of internationalization. Furthermore, the authors find that the SOEs affiliated with higher levels of government organizations are more likely to locate business operations in developing countries and engage in more diversity of product lines. Research limitations/implications – The findings show that the different varieties of state capitalism are the source of the different internationalization patterns of SOEs. Instead of supposing SOEs to be uniform players in emerging economies, the authors show that the nature of SOEs varies depending on the level of government with which they are affiliated, and this fact results from the divergent manifestations of state capitalism itself. Originality/value – This study improves the understanding of how state capitalism affects the capabilities and motivations of SOEs in regard to overseas expansion. The authors extend institutional theory by supposing that the level of state capitalism has a positive effect on the rhythm of internationalization. Moreover, the authors find that SOEs embedded with high levels of government affiliation tend to enter into developing countries and diversify their product lines.

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Internationalization Paths of Chinese Firms: Evidences From an Emerging Economy

Cited by 10 publications

References 38 publications

China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe

China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe

Internationalization strategies of emerging market banks: Challenges and opportunities

Does state capitalism matter in firm internationalization? Pace, rhythm, location choice, and product diversity

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