Push and Pull Factors for Chinese OFDI in Europe

Schüler‐Zhou, Yun; Schüller, Margot; Brod, Magnus

doi:10.1057/9780230361577_9

Cited by 19 publications

(6 citation statements)

References 15 publications

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“…Thus, FDI of Chinese MNEs has been mainly driven by strategic asset-, natural resource-or marketseeking motivations (Deng, 2004;Hong and Sun, 2006). As a result, most prior studies dealing with China's FDI drivers focused on these three motivations, not addressing efficiency-seeking (Buckley et al, 2007(Buckley et al, , 2016Lu et al, 2011;Schüler-Zhou et al, 2012;Wang et al, 2012;Pan, 2017). Therefore, next we propose several hypotheses regarding the impact of these three FDI drivers on establishment mode choice, along with the potential influence of state ownership on those relationships.…”

Section: Theory and Hypotheses Developmentmentioning

confidence: 97%

FDI drivers and establishment mode choice of emerging-market MNEs: the role of state ownership

Quer

García

Andreu

2020

EJIM

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Drawing on an institutional perspective, this study analyses how state ownership affects the relationship between foreign direct investment (FDI) drivers and establishment mode choice of emerging-market multinational enterprises (EMNEs). We argue that state-owned EMNEs encounter stronger institutional pressures in technology-and natural resource-rich countries derived from concerns about takeovers of local companies. Moreover, in low-growth markets, state-owned EMNEs do not always behave as pure profitmaximisers since they are usually subject to home government institutional influences and pursue policy goals. For these reasons, we hypothesise that their choice between acquisitions and greenfield investments differs from that of privately-owned EMNEs. Our analysis of 643 FDIs undertaken by Chinese companies confirms that state-owned EMNEs are less likely to choose acquisitions in host countries with a higher technology and natural resource endowment. However, the relationship between host market growth and establishment mode is not influenced by state ownership.

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Section: Theory and Hypotheses Developmentmentioning

confidence: 97%

FDI drivers and establishment mode choice of emerging-market MNEs: the role of state ownership

Quer

García

Andreu

2020

EJIM

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“…While most literature on Chinese FDI in Europe focuses on investment in the region as a whole (e.g., Burghart & Rossi, ; Clegg & Voss, ; De Beule, Van Den Bulcke, & Zhang, ; Knoerich, ; Nicholas, ; Schuler‐Zhaou, Schuller, & Brod, ) or the larger economies such as the United Kingdom and Germany (e.g., Burghart & Rossi, ; Hanemann & Huotari, ), this article examines the case of Chinese FDI in a small developed European economy, namely, Ireland.…”

Section: Research Context and Motivationmentioning

confidence: 99%

“…As such, there has been an increase in Chinese investment flows to developed economies, from investment of $211 million in 2003 to over $13 billion in 2012 (Table ) with Europe increasing in significance as a host destination for FDI (Burghart & Rossi, ). It is expected that such investment into Europe will further rise in the coming years, attracted by a more receptive European investment climate (Brennan & Kim, ; Schuler‐Zhou et al, ), competitive asset valuations that have obtained since the global financial crisis, and favorable exchange rates. There has also been a change in the nature of investing firms.…”

Section: China and Ireland's Investment Landscapesmentioning

confidence: 99%

“…The Irish case provides clear evidence of China's governmental influence on OFDI. The Outbound Investment Catalogue recommends western EU countries for financial services, high‐tech investment, and R&D (Schuler‐Zhou et al, ), mirroring the sectors in which Chinese firms have investment in Ireland. Similarly, echoing China's investment priorities as laid out in the government's latest Five‐Year Plan (“People's Republic of China,” ), the research reveals that Chinese companies entering Ireland in the coming years will be focused on brand development, R&D, and other high‐value‐adding activities.…”

Section: Analysis and Findingsmentioning

confidence: 99%

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Attracting Chinese Foreign Direct Investment to Small, Developed Economies: The Case of Ireland

Collison

Brennan

Rios‐Morales³

2017

Thunderbird International Business Review

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In response to the unparalleled growth in foreign direct investment (FDI) from China in recent years, we present a multilevel, in-depth analysis of Chinese investment in Ireland using semi-structured interviews and case studies. Our fi ndings suggest that while Chinese FDI can be explained to an extent through classical theories of FDI, such investment is unconventional in many regards and thus requires the extension of established theories. We also fi nd that factors above and beyond those that apply to traditional sources of investment are at play in the case of China, including the presence of host-country clusters, the strength of intergovernmental relations, and the degree of alignment between China's development priorities and the host.

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“…After the global financial crisis the state-related investment promotion agencies (IPAs) in Europe particularly wanted to attract foreign investments, including those from emerging economies such as China (Schüler-Zhou et al, 2012). The Ministry of Foreign Affairs of Finland released China Action Plan in 2010 which recognizes the growing role of China on the international scene and states priority areas for co-operation.…”

Section: Introductionmentioning

confidence: 99%

Chinese ‘Enormous Hospitality’ Versus Finnish ‘Meeting Among Friends’: Guest-Host Positioning in China Finland Delegation Visits

Stopniece

2017

Intercultural Communication With China

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The importance of cooperation with China has been growing in Finland lately in view of interest to attract Chinese investments and the increasing importance of China on a global scale. Finland has established governmental agencies to aid Chinese investment and ensured the cooperation of regional and local governments in the framework activities, such as town twinning. An important part of investment facilitation and wider cooperation comprises delegation visits by both interested nations to the other country. These involve enterprise interest matchmaking events, meetings with officials, company visits, etc. Based on interview and observation data, this paper elaborates on how the phenomena related to power, positioning, and accommodation between Finnish and Chinese side are manifested during delegation visits. This study was guided by the Positioning Theory by Harré (1991) which involves the need to attend to local moral orders and centers on the view that local distribution of rights and duties determine different kinds of acts and the way episodes unfold. As potential investors, recently Chinese partners yield a different kind of power, which also affects communication between sides. However, in some contexts the discourse of China as a developing country is present as well. Local hosting traditions and being in a role of a guest or host adds some additional variety and layering to communication dynamics. The presence of various discursive positioning elements is analyzed in such aspects as preconceived attitudes, initial visiting impressions, self-presentation, reception style, and the provision of food.

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Push and Pull Factors for Chinese OFDI in Europe

Cited by 19 publications

References 15 publications

FDI drivers and establishment mode choice of emerging-market MNEs: the role of state ownership

FDI drivers and establishment mode choice of emerging-market MNEs: the role of state ownership

Attracting Chinese Foreign Direct Investment to Small, Developed Economies: The Case of Ireland

Chinese ‘Enormous Hospitality’ Versus Finnish ‘Meeting Among Friends’: Guest-Host Positioning in China Finland Delegation Visits

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