In this article, we present a springboard perspective to describe the internationalization of emerging market multinational corporations (EM MNEs). EM MNEs use international expansion as a springboard to acquire strategic resources and reduce their institutional and market constraints at home. In so doing, they overcome their latecomer disadvantage in the global stage via a series of aggressive, risk-taking measures by aggressively acquiring or buying critical assets from mature MNEs to compensate for their competitive weaknesses. We discuss unique traits that characterize the international expansion of EM MNEs, and the unique motivations that steer them toward internationalization. We further delineate peculiar strategies and activities undertaken by these firms in pursuit of international expansion, as well as internal and external forces that might compel or facilitate their propulsion into the global scene. We finally explain the risks and remedies associated with this international ‘springboarding’ strategy and highlight major issues meriting further investigation.

https://link.springer.com/content/pdf/10.1057%2Fpalgrave.jibs.8400275.pdf

International expansion of emerging market enterprises: A springboard perspective

This study investigates the determinants of Chinese outward direct investment (ODI) and the extent to which three special explanations (capital market imperfections, special ownership advantages and institutional factors) need to be nested within the general theory of the multinational firm. We test our hypotheses using official Chinese ODI data collected between 1984 and 2001. We find Chinese ODI to be associated with high levels of political risk in, and cultural proximity to, host countries throughout, and with host market size and geographic proximity (1984 to 1991) and host natural resources endowments (1992 to 2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese MNEs.

/pdf/the-determinants-of-chinese-outward-foreign-direct-ug17cra671.pdf

The determinants of Chinese outward foreign direct investment

What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

(1991). Applied Linear Regression Models. Journal of Quality Technology: Vol. 23, No. 1, pp. 76-77.

Applied Linear Regression Models

This paper examines the patterns of, and motives for, internationalization by prominent market-seeking Chinese firms. Case studies of these firms indicate that they are seeking technological and brand assets to create a competitive position in international markets. While mainstream theory tends to assume that firms internationalize to exploit competitive advantages, Chinese firms are generally making such investments in order to address competitive disadvantages. They are engaging in ‘inward’ internationalization by means of original equipment manufacture (OEM) and joint venture partnerships, and ‘outward’ internationalization by means of acquisition and organic expansion abroad. Each of these routes offers certain benefits coupled with its own challenges or risks. The paper concludes that the Chinese case offers an opportunity to extend present theorizing in four primary areas concerning the latecomer perspective and catch-up strategies, institutional analysis with reference to the role of government, the relations between entrepreneurs and institutions, and the liability of foreignness.

/pdf/the-internationalization-of-chinese-firms-a-case-for-2hti5tfthh.pdf

The Internationalization of Chinese Firms: A Case for Theoretical Extension?[1]

This paper focuses on the importance of dynamic capabilities in shaping the nature of international strategies of emerging market multinationals from mid-range economies. We argue that dynamic capabilities theory provides an insightful approach to understanding the internationalization of emerging market multinationals and their strategic choices. Drawing on dynamic capability theory and unpacking dynamic capabilities into four distinct but related dimensions or facets, we develop a typology of three internationalization strategies available to emerging market multinationals in their international expansion: sequential international ambidexterity (from exploitation to exploration, and vice versa) and structural international ambidexterity (simultaneous exploration and exploitation). Success factors associated with each of the ambidextrous internationalization strategies are also considered. We conclude with a discussion of the implications of the dynamic capabilities framework for theoretical implications and fruitful areas for future research endeavors.

/pdf/international-strategies-of-emerging-market-multinationals-a-2tnhnbgxz3.pdf

International strategies of emerging market multinationals: A dynamic capabilities perspective

This chapter focuses on the Chinese cross-border merger and acquisition (M&A) amid the rising trend of multinational companies from emerging economies. Based on a systematic review of published papers in top international business/strategy/organization journals on Chinese overseas M&A, we offer a tentative multilevel framework to consolidate the past achievement, consider contemporary debates, so as to direct future research efforts. We suggest that Chinese overseas M&A research should emphasize on a process perspective ranging from pre-acquisition to post-acquisition. In addition, qualitative research and methodological pluralism should be embraced to achieve this goal due to the nature of this emerging field of Chinese cross-border M&A. By allocating the extant literature into the multilevel framework, we articulate the demand and identify several potential topics for scholarly inquiry in the future in order to gain a nuanced understanding of this important phenomenon of Chinese cross-border M&A for both China and the rest of the world.

Chinese Cross-Border M&A: Past Achievement, Contemporary Debates and Future Direction

Accelerated internationalization by MNCs from emerging economies

Purpose – Chinese companies are increasingly using cross‐border mergers and acquisitions (M&A) to source knowledge or strategic assets. For many, global acquisitions have proven to be highly problematic and value‐destroying. The purpose of this paper is to address this critical acquisition failure issue from an absorptive capacity perspective.Design/methodology/approach – Guided by the framework that focuses on how acquiring a firm's weak absorptive capacity damages its ability to assimilate, integrate and apply external new knowledge, one high‐profile Chinese failed acquisition: TCL acquisition of France's Thomson's TV business in 2004 is analyzed empirically.Findings – Acquisition performance of Chinese overseas M&A is found to be substantially affected by the acquiring firm's absorptive capacity at multiple dimensions. Research limitations/implications – The absorptive capacity construct provides an insightful account for differentials in Chinese overseas M&A performance.Practical implications – For de...

/pdf/absorptive-capacity-and-a-failed-cross-border-m-a-3uvcuh2dhg.pdf

Ping Deng

Papers

International strategies of emerging market multinationals: A dynamic capabilities perspective

Chinese Cross-Border M&A: Past Achievement, Contemporary Debates and Future Direction

Accelerated internationalization by MNCs from emerging economies

Absorptive Capacity And A Failed Cross-Border M&A

From international new ventures to MNCs: Crossing the chasm effect on internationalization paths