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

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.

How Chinese expatriates’ cultural intelligence promotes supervisor-subordinate Guanxi with Thai Employees: The mediating effect of expatriates’ benevolence

This research examines the role of the cultural intelligence (CQ) of Chinese expatriates in supervisory positions at subsidiaries in Thailand, concerning the quality of the supervisor-subordinate guanxi they establish with their Thai employees. Based on the framework of supervisor trust-building, this research tests whether the effect of Chinese expatriates’ CQ on the guanxi established with Thai employees can be mediated by the Chinese expatriates’ benevolence characteristic. This study also examines whether supervisor-subordinate guanxi predicts the Chinese expatriates’ leadership effectiveness. Survey data were collected from 201 dyads of Chinese expatriates and Thai employees at the subsidiaries of Chinese multinational enterprises in Thailand and were analyzed using Partial Least Squares Structural Equation Modeling. The subsequent results do not significantly support a direct link between the Chinese expatriates’ CQ and supervisor-subordinate guanxi with their Thai employees. However, the effect of Chinese expatriates’ CQ on supervisor-subordinate guanxi is shown to be fully mediated by supervisor benevolence. The analysis also indicates that supervisor-subordinate guanxi significantly explains the leadership effectiveness of Chinese expatriates.

EXPRESS: The Impact of Chinese Investments on Western Multinational Enterprises’ Work and Employment Practices: A Consideration of Institutional, Power and Dominance Effects

One of the most significant developments in international business in recent years is the dramatic expansion of Chinese – often state-led or state-supported – investment in Africa. While we know something of Chinese multinational enterprises’ strategies, we know comparatively little about their work and employment practices and even less about their influence on other MNEs. We examine these important issues by looking at the practices of a major Chinese MNE alongside those of a French MNE and a US MNE in Cameroon’s oil industry. We find that while the French and American MNEs were successful in importing their preferred practices and in evading host-country regulations for many years, this was challenged upon the arrival of the Chinese MNE. We query why and by what means did the entrance of a major MNE lead to significant changes in the behaviours of long-resident MNEs. The translation of the identified effects is explained by drawing on different levels of analysis that include an appreciation of the location of the MNE and the state within the international political economy of capitalism, attendant shifts in the frontiers of political influence, isomorphic institutional influences, actors’ postures within and beyond the MNE, and their relational interplay.

The Influence of terrorism on Foreign Direct Investment

In the process of globalization, the spread of terrorism has brought risks and uncertainties to multinational enterprises. In order to find out the influence of terrorism, this research use the Chinese multinational enterprises’(MNEs) 2089 investments in 125 countries to studies the impact of terrorist events on their investment decisions. The research find that the the more people affected by the terrorism in one country, the less subsidiaries set up in the countries. Terrorist events have brought severe challenges to investment. Governments of countries should improve their own security protection systems, while enterprises should also strengthen the risk management system.