The Internationalization of Chinese Firms: Case Analysis of Some Key Dimensions

The Internationalization of Chinese Firms: Case Analysis of Some Key Dimensions

By

Wenbo Tang

2007

A dissertation presented in part consideration for the degree of

MA Management

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Declaration

I declare that this dissertation and the work presented in it are my own achievement except others have stated.

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Acknowledgements

I would like to thank my supervisor Dr. Chengqi Wang, for his advice, guidelines and great support throughout the course of writing this dissertation. Without his help, this dissertation would be impossible. My great thanks also go to my loving parents who have been supporting and encouraging me throughout the period of my study in the UK.

I would also express my thanks to all academic and non-academic staff at Nottingham University Business School, who helped me successfully finish the challenging MA courses.

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Abstract

Under the background of rapid economic globalization and the information revolution, internationalization has become a trend for firms which face intensified international competition and pursue further development. Employing a case-study approach, this dissertation examines some key issues related to the internationalization of Chinese firms. Specifically, the research investigates the key factors that possibly determine the success of Chinese firms’ internationalization, the routes through which Chinese firms should implement for their aspiration of internationalization, the foreign market entry strategy of Chinese internationalized firms. In examining these issues, the dissertation aims to find how firms from emerging economies such as China can improve their international competitiveness through internationalization.

A number of interesting research findings have emerged from this study. First, the results from our case study show that the motivation for internationalization varies from firm to firm, ranging from escape investment, to expansion of market and to strategic assets-seeking. This demonstrates that no single theory can explain internationalization of firms from developing countries such as China. Second, the strategy for internationalization also varies from firm to firm, ranging from establishment of joint ventures to wholly-owned greenfield production facilities. From this one can conclude that firms employ different strategies depending on the type of their competitive advantages and specific market conditions. It seems that the classic Uppsala model can not explain the process of internationalization