scholarly journals Research on International Investment Risk Grading Evaluation Under “The Belt and Road Initiative” Strategy: A Perspective of Chinese Enterprises

Author(s):  
Yueqiu Mao
2018 ◽  
Vol 10 (9) ◽  
pp. 3119 ◽  
Author(s):  
Jiahai Yuan ◽  
Yurong Zeng ◽  
Xiaoxuan Guo ◽  
Yu Ai ◽  
Minpeng Xiong

In recent years, Chinese companies’ investment in overseas electric power has grown rapidly. Chinese enterprises with matured technology and abundant talent in the field of electric power and electric power investment are becoming the focus of Chinese enterprise investment. However, just like any other energy investment, electric power investment has various potential risks, including economic risk, financial risk, social risk, political risk, electric power foreground risk, resource risk, and environmental risk. To specifically measure electric power investment risk, this article proposed a nine-dimensional indicator system for countries along China’s ‘Belt and Road Initiative’. Moreover, a fuzzy integrated evaluation model ground on the entropy weight was established to evaluate the electric power investment risk of 21 countries along China’s Belt and Road Initiative. The result of research shows that electric power foreground and Chinese factors have become the major underlying determinants of electric power investment risk, while coal power economy, renewable power economy, and political risk should also be attached enough attention when making investing decisions. In conclusion, the optimal choices for China’s electricity investment are determined after balancing electric power foreground and basic factors. After analyzing investment risks of various countries, this paper puts forward policy suggestions, which can help Chinese enterprises avoid electric power investment risks and improve investment efficiency.


Author(s):  
Jianyu Chen ◽  
Wei Liu

Along with the acceleration of “One Belt and One Road” CSR progress, more Chinese companies possess adequate CSR performance capacity and conditions. In this chapter, first, the basic concept of CSR has been briefly introduced and the overviews are mainly stated including the concept, development, and current situation under the Chinese backdrop. Second, the current development of CSR, risk of the CSR, and CSR strategies of Chinese enterprises under the backdrop of Belt and Road Initiative will be introduced. Third, the responsibility of CSR of state-owned enterprises under the backdrop of Belt and Road Initiatives will be mentioned with main reference of the social responsibility reports of state-owned enterprises as well as news reports. Fourth, classic case (China Communications Construction) will be used to analyze the CSR of Chinese enterprises under the backdrop of Belt and Road Initiatives.


2018 ◽  
Vol 1 (2) ◽  
pp. 219-240 ◽  
Author(s):  
Shen Kunrong ◽  
Jin Gang

Purpose The purpose of this paper is to comprehensively examine the influence of formal and informal institutional differences on enterprise investment margin, mode and result. Design/methodology/approach This paper is based on 2,440 micro samples of large-scale outbound investment from 609 Chinese enterprises from the years 2005 to 2016. Findings The study has found that formal institutional differences have little impact on investment scale, but significantly affect investment diversification. In order to avoid the management risks brought by formal institutional differences, enterprises tend to a full ownership structure. However, the choice between greenfield investment and cross-border mergers and acquisitions is not affected by formal institutional differences. In contrast, the impact of informal institutional differences is more extensive. Both formal and informal institutional differences significantly increase the probability of investment failure. Further research found that the Belt and Road Initiative (BRI) bridges the formal institutional differences. Originality/value The study concludes that developing the BRI, especially cultural exchanges with countries alongside the Belt and Road, will help enterprises to “go global” faster and better.


2017 ◽  
Vol 10 (9) ◽  
pp. 96
Author(s):  
Guiyu Dai ◽  
Yi Cai

“The Belt and Road Initiative” not only provides great opportunities but also poses enormous challenges to Chinese enterprises for further development. Along the Belt and the Road, there are different countries with unique culture characteristics, which will be the difficult challenges Chinese enterprises have to face in the overseas investment. The present study will combine PEST (Political, Economic, Social and Technological) model with Hofstede’s culture dimensions as the theoretical basis for analyzing the potential opportunities and challenges Chinese enterprises tend to confront in Poland. Based on a detailed analysis of the opportunities and challenges, this writing proposes three tentative cross-culture management strategies: (1) Investigating the local markets and identifying the culture differences; (2) Cultivating intercultural communication competence of the cross-culture employees; (3) Acculturating to the local society and making innovation based on culture fusion, which would be referential for Chinese enterprises to seek investment opportunities in the countries along the Belt and the Road.


2019 ◽  
Vol 13 (4) ◽  
pp. 860-876 ◽  
Author(s):  
Yanjie Bian ◽  
Juan Xie ◽  
Yang Yang ◽  
Mingsong Hao

Purpose The purpose of this study is to examine the impact of corporate social capital and local embeddedness on perceived business performance of Chinese enterprises operating overseas, whose recent growth resulted from the Belt and Road Initiative. Design/methodology/approach This study reports the results of a sample of 83 Shaanxi outward foreign direct investment (FDI) firms operating in Africa, Asia, Australia, Europe and North America. In-depth interviews with a few sampled firms are used to develop the survey questionnaire and help interpret the results of statistical analysis. Findings This study proposes two hypotheses and both are supported by the data. First, corporate social capital is a three-dimensional concept, covering governmental, market and personal sources with each source making an equal, positive effect on perceived overseas performance of the surveyed firms. Second, these firms do better when having developed a higher degree of local embeddedness, a measure on local channels used to obtain information and mobilize resources. While local embeddedness indeed mediates some effect of corporate social capital, both variables have shown direct impact on performance. Research limitations/implications Reported findings are from a small sample of 83 firms in an inland Chinese province, and business performance is measured by subjective evaluation rather than economic output. Practical implications The practical implication is that a Chinese FDI firm is expected to maintain all three relational channels – governmental, market and interpersonal – because the firm can gain different kinds of information and resources from these sources and each channel is necessary and equally important for the firm’s development. Importantly, it needs a different strategy to maintain and best use each channel. For the Belt and Road Initiative to be effective, China must establish platforms through which enterprises can strengthen and reconfigure their corporate social capital, as well as to cultivate and sustain their local networks in foreign destinations.


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