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Journal ArticleDOI

A social‐network behavioural approach to overseas chinese and overseas non‐chinese investments in china

Jiantao Lu
- 01 Sep 2012 - 
- Vol. 103, Iss: 4, pp 426-442
TLDR
This paper examined the effect of guanxi on the locational and sectoral choices of Chinese and non-Chinese FDI in China and highlighted social-network behavioral approach as a method for understanding the differences between the two types of investors.
Abstract
This paper focuses on an ethnic dimension of Chinese FDI and non-Chinese FDI in China. It seeks to highlight social-network behavioural approach as a method for understanding the differences between the two types of investors. It examines the effect of guanxi on the locational and sectoral choices of FDI. Guanxi is the natural advantage and competitive advantage of Chinese FDI. Based on probability sampling, questionnaire surveys conducted in China are used to verify the expected significance of guanxi networks for overseas Chinese investors. Survey analysis results indicate that guanxi networks have played a significant role in the locational and sectoral choices of Chinese FDI compared with non-Chinese FDI. This study also explains how small- and medium-sized overseas Chinese investment can gain competitive advantage.

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Citations
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References
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Economic Action and Social Structure: The Problem of Embeddedness

TL;DR: In this article, the extent to which economic action is embedded in structures of social relations, in modern industrial society, is examined, and it is argued that reformist economists who attempt to bring social structure back in do so in the "oversocialized" way criticized by Dennis Wrong.
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The Internationalization Process of the Firm - A Model of Knowledge Development and Increasing Foreign Market Commitments

TL;DR: In this paper, a model of the internationalization process of a firm focusing on the gradual acquisition, integration and use of knowledge about foreign markets and operations, and on the incrementally increasing commitments to foreign markets is developed.
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The Effect of National Culture on the Choice of Entry Mode

TL;DR: In this paper, the authors investigated the influence of national culture on the choice of entry modes in the United States market by analysing data on 228 entries into the market by acquisition, wholly owned greenfield and joint venture.
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The internationalization of the firm — four swedish cases

TL;DR: In this article, the authors analyse the internationalization of four Swedish firms (Sandvik, Atlas Copco, Facit and Volvo) and show that they sell more than two-thirds of their turnover abroad and have production facilities in more than one foreign country.
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Toward an Eclectic Theory of International Production: Some Empirical Tests

TL;DR: In this paper, the main features of the eclectic theory of international production are discussed and the significance of ownership-and location-specific variables in explaining the industrial pattern and geographical distribution of the sales of U.S. affiliates in fourteen manufacturing industries in seven countries in 1970.
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This study also explains how small- and medium-sized overseas Chinese investment can gain competitive advantage.