The Impact of Home Country Institutional Effects on the Internationalization Strategy of Chinese Firms

Hinrich Voss, Peter J. Buckley, Adam R. Cross

Research output: Contribution to journalReview articlepeer-review

86 Citations (Scopus)

Abstract

Mainland Chinese firms have become important international investors. Many have gained their capabilities to internationalize in a domestic institutional environment characterised by significant market imperfections. In this study, we argue that the imperfections affect firm behavior depending on firm size, ownership form, and location. We find preliminary support for the notion that large, well connected Chinese firms benefit most from institutional advantages, but that smaller firms internationalize because of institutional constraints. This represents a more nuanced view of the determinants of Chinese firm internationalization than is evident in prior research, with consequences for future theorising and empirical research on Chinese MNEs.

Original languageEnglish
Pages (from-to)25-48
Number of pages24
JournalMultinational Business Review
Volume18
Issue number3
DOIs
Publication statusPublished - 19 Aug 2010
Externally publishedYes

Keywords

  • Chinese MNEs
  • Institutional environment
  • Internalization theory
  • Internationalization
  • Interview data

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