scholarly journals What Determines the Establishment of Chinese Multinational Enterprises’ Asian Regional Headquarters?

2016 ◽  
Vol 13 (1) ◽  
pp. 85-119
Author(s):  
Xufei Ma ◽  
Pengji Wang ◽  
Donghong Li
Keyword(s):  
Emerging Economies ◽  
Regional Integration ◽  
Multinational Enterprises ◽  
International Management ◽  
Management Capability ◽  
Regional Strategies ◽  
Regional Headquarters ◽  
Chinese Mnes ◽  
The Relationship ◽  
Chinese Multinational Enterprises

ABSTRACTThis study addresses why multinational enterprises (MNEs) in emerging economies establish regional headquarters outside their home countries but within their home regions – an important question that previous studies have largely ignored. We extend Rugman and Verbeke's firm-specific assets (FSAs) framework in contemporary internalization theory and differentiate two firm-specific regional strategies (i.e., foreign direct investment (FDI) and export regionalization) to examine their effects on MNEs’ establishment of regional headquarters in the context of emerging economies. Using survey data from 226 Chinese MNEs, we find that intraregional FDI and interregional exports encourage MNEs to build Asian regional headquarters (ARHQ). Furthermore, we find that home-city regional integration moderates the relationship between interregional exports and ARHQ establishment and that MNEs’ international management capability moderates the relationship between intraregional FDI and ARHQ establishment. This study contributes to the regional strategy literature by clarifying the regional strategies, structures, and management of latecomer Chinese MNEs.

How the Human Resource Practices of Chinese MNEs in Africa Create Economic Growth and Livelihood Options

2018 ◽  
pp. 85-109
Author(s):  
Sue Claire Berning ◽  
Judith Ambrosius
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Human Resource ◽  
Multinational Enterprises ◽  
Poverty Reduction ◽  
Developmental Effect ◽  
Livelihood Options ◽  
Chinese Mnes ◽  
The Relationship

The purpose of this paper is to critically analyze the economic development impact of multinational enterprises (MNEs) in developing countries. In particular, the relationship between MNEs' developmental effect on economic growth and poverty reduction and their use of human resource management (HRM) practices will be examined. The regional focus will be on Chinese MNEs in Africa. The paper is conceptual in nature by analyzing relevant key literatures, investigating cases of Chinese MNEs in Africa, and finally deriving a systematic conceptual framework.

scholarly journals ASEAN Multinational Entreprises: A Structural Analysis of Strategic Coherence

2020 ◽  
Author(s):  
Ha Nam Khanh Giao ◽  
Frank L. Bartels
Keyword(s):  
International Business ◽  
Software Package ◽  
Multinational Enterprises ◽  
Goodness Of Fit ◽  
International Management ◽  
Empirical Literature ◽  
Fit Indices ◽  
Management Capability ◽  
Linear Structural Relations ◽  
Lisrel Model

Multinational enterprises (M.NEs ) from ASEAN have been intemationalizing, and the dynamics of this process are of interest in the empirical literature of international business. The international organizational aspects of 135 ASEAN MNEs are examined, using Linear Structural Relations (LISREL, a statistical software package ), to model their “strategic coherence”, “dispersed functionality” and “international management capability”. The key results are that the proposed LISREL model confirms that the predicted relationships exhibit high goodness-of-fit indices. Dispersed functionality significantly predicts strategic coherence. Dispersed functionality and international management capability display a non- recursive, or interdependent, correlation.

The Determinants of Global Integration Strategies of Chinese Multinationals—Some Empirical Evidence

2010 ◽  
Vol 2 (1) ◽  
pp. 61-86 ◽  
Author(s):  
Bersant Hobdari ◽  
Evis Sinani ◽  
Marina Papanastassiou ◽  
Robert Pearce
Keyword(s):  
Empirical Evidence ◽  
Multinational Enterprises ◽  
Evidence Based ◽  
Global Integration ◽  
Strategic Choices ◽  
Firm Level ◽  
Chinese Mnes ◽  
Chinese Multinationals ◽  
Integration Strategies ◽  
Chinese Multinational Enterprises

The main purpose of this research is to understand the determinants of global integration strategies of Chinese Multinational Enterprises (MNEs). In this article, we identify four expansion strategies for Chinese MNEs, that is, horizontal, vertical, lateral and risk diversification and we investigate a series of location and firm-level factors that determine the adoption of each strategy. We present empirical evidence based on data from the 2008 Spring edition of the Lexis Nexis Corporate Affiliates Directory. Our results indicate that Chinese MNEs expand internationally through a grid of strategic choices which is diversified geographically and industrially.

How the Human Resource Practices of Chinese MNEs in Africa Create Economic Growth and Livelihood Options

2022 ◽  
pp. 892-910
Author(s):  
Sue Claire Berning ◽  
Judith Ambrosius
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Human Resource ◽  
Multinational Enterprises ◽  
Poverty Reduction ◽  
Developmental Effect ◽  
Livelihood Options ◽  
Chinese Mnes ◽  
The Relationship

The purpose of this paper is to critically analyze the economic development impact of multinational enterprises (MNEs) in developing countries. In particular, the relationship between MNEs' developmental effect on economic growth and poverty reduction and their use of human resource management (HRM) practices will be examined. The regional focus will be on Chinese MNEs in Africa. The paper is conceptual in nature by analyzing relevant key literatures, investigating cases of Chinese MNEs in Africa, and finally deriving a systematic conceptual framework.

Chinese reverse M&A: the Wu Wei paradigm of post-M&A integration process

2018 ◽  
Vol 12 (4) ◽  
pp. 774-794 ◽  
Author(s):  
Zhe Sun
Keyword(s):  
Multinational Enterprises ◽  
Design Methodology ◽  
Integration Process ◽  
Content Type ◽  
New Model ◽  
The People ◽  
Wu Wei ◽  
Chinese Mnes ◽  
Depth Interviews ◽  
Chinese Multinational Enterprises

Purpose The purpose of this paper is to unpack the black box of post-merger and acquisition (M&A) integration of reverse M&A by Chinese multinational enterprises (MNEs). Design/methodology/approach This research adopts multiple cases of Chinese reverse M&A. Data are collected using the approaches of in-depth interviews, storytelling and narratives. Findings This research identifies various antecedents underlying Chinese post-M&A integration, such as asymmetries in resources, capabilities, vision and status between Chinese MNEs and acquired firms. The post-M&A integration process of Chinese reverse M&A consists of a top-down effortless integration initiated by Chinese MNEs with both benefits and problems, and a bottom-up reverse integration conducted by acquired firms. Originality/value By linking the pre-M&A phase and the post-M&A phase, this research builds a new model of post-M&A integration of Chinese reverse M&A from an indigenous Wu Wei paradigm. The new model counterpoises extant literature, shifting from the task and efficiency-focussed view to the people and harmony-focussed view.

scholarly journals The Institutional Influence on the Location Strategies of Multinational Enterprises from Emerging Economies: Evidence from China's Cross-border Mergers and Acquisitions

2016 ◽  
Vol 12 (3) ◽  
pp. 425-448 ◽  
Author(s):  
Peter J. Buckley ◽  
Pei Yu ◽  
Qing Liu ◽  
Surender Munjal ◽  
Pan Tao
Keyword(s):  
Mergers And Acquisitions ◽  
Host Country ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Country Risk ◽  
Cross Border ◽  
Institutional Influence ◽  
Location Strategies ◽  
Chinese Multinational Enterprises

ABSTRACTThis study investigates the institutional influence on the location strategies of Chinese cross-border mergers and acquisitions (M&A) during the period 1985–2011 across 150 economies using Heckman's two-stage model. The results suggest that Chinese Multinational Enterprises (MNEs) are ‘shortsighted’ and show perverse behaviour towards host country risk when deciding on the location of host country and volume of investment undertaken through M&As, which may damage the firm's long-term profitability.

scholarly journals Assessing the Competitiveness of Chinese Multinational Enterprises Development: Evidence From Electronics Sector

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989821
Author(s):  
Md. Salamun Rashidin ◽  
Sara Javed ◽  
Lingming Chen ◽  
Wang Jian
Keyword(s):  
Multinational Enterprises ◽  
Global Market ◽  
Small Enterprises ◽  
Diamond Model ◽  
Chinese Mnes ◽  
Operational Practices ◽  
The Right ◽  
Global Company ◽  
Country Specific ◽  
Chinese Multinational Enterprises

Multinational enterprises (MNEs) are key drivers of globalization. The study investigated the performance of leading Chinese electronics MNEs, Huawei, Lenovo, and Haier, and made a comparison between Chinese electronics MNEs and American electronics MNEs along with their specifications in terms of globalization by using Asmussen’s model, Petersen’s model, Rugman’s firm-specific and country-specific advantage (FSA-CSA) matrix, and the Porter’s diamond model. Findings revealed that only Huawei is the truly global company at present; nevertheless, Lenovo and Haier are both on the right track, reaching the same status as Huawei. These firms can successfully utilize their country-specific advantages by capitalizing on China’s external partnerships and existing trade agreements. Chinese projects seem to be able to provide Chinese MNEs with the ability to maximize their opportunity to seek growth externally and enter the global market. An examination of MNE practices facilitated by American and Chinese firms imparts relevant commonalities but differences in operational practices. Small enterprises can follow the process and strategy, while policymakers will receive a suggestion to implicate an industrial-friendly policy.

scholarly journals The Co-Evolution of Global Legitimation and Technology Upgrading: The Case of Huawei

2021 ◽  
Vol 24 (2) ◽  
pp. 147-172
Author(s):  
Sihong Wu ◽  
Di Fan ◽  
Yiyi Su
Keyword(s):  
Multinational Enterprises ◽  
Local Community ◽  
Foreign Markets ◽  
The United Kingdom ◽  
Chinese Mnes ◽  
Corporate Social ◽  
Technology Upgrading ◽  
Innovation Processes ◽  
Chinese Multinational Enterprises

This study explores the underlying relationship between acquisition of global legitimacy and the search for technology upgrading by Chinese multinational enterprises (MNEs). Using Huawei’s investment in Russia, Kenya, the United Kingdom and Canada as an in-depth case study, we observe that through corporate social responsibility (CSR) activities in foreign markets and engaging with local community, Chinese MNEs can acquire global legitimacy and gradually catch up with industry leaders. However, the process of global legitimation and innovation continues to evolve. We find that, together with engaging in CSR activities, acquisition of sophisticated knowledge and creation of innovation bring more legitimacy challenges to these firms. Thus, we suggest that Chinese MNEs’ global legitimation and innovation processes are closely coupled and mutually influential, resulting in co-evolution.

Centralization and Effectiveness of Reward Management in Multinational Enterprises

2018 ◽  
Vol 17 (2) ◽  
pp. 55-65 ◽  
Author(s):  
Michael Tekieli ◽  
Marion Festing ◽  
Xavier Baeten
Keyword(s):  
Decision Making ◽  
Social Identity Theory ◽  
Multinational Enterprises ◽  
Role Identity ◽  
Management Decision ◽  
Role Identities ◽  
Management Decision Making ◽  
New Perspective ◽  
Subsidiary Managers ◽  
The Relationship

Abstract. Based on responses from 158 reward managers located at the headquarters or subsidiaries of multinational enterprises, the present study examines the relationship between the centralization of reward management decision making and its perceived effectiveness in multinational enterprises. Our results show that headquarters managers perceive a centralized approach as being more effective, while for subsidiary managers this relationship is moderated by the manager’s role identity. Referring to social identity theory, the present study enriches the standardization versus localization debate through a new perspective focusing on psychological processes, thereby indicating the importance of in-group favoritism in headquarters and the influence of subsidiary managers’ role identities on reward management decision making.

Investments by Emerging-Market Multinationals in Other Emerging Markets

2018 ◽  
pp. 630-656
Author(s):  
Jing Li ◽  
Daniel Shapiro
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Development ◽  
Spillover Effects ◽  
Investment Strategy ◽  
Future Research ◽  
Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

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