Entry strategies of Chinese high-tech manufacturing enterprises to the western market: Post-pandemic era and deglobalization
List of Authors
  • Cao Ningxin , Wu Ke

Keyword
  • Entry Strategies, Deglobalization, Post-Pandemic, Chinese MNEs

Abstract
  • In 2019, the world economy entered the most turbulent period since the financial crisis and the COVID-19 pandemic. Trade disputes intensified, geopolitical tensions and other destabilizing factors in the international community increased, and many countries imposed stricter regulatory scrutiny on foreign investment. Unilateralist, investment protectionism is prevalent, and international relations are becoming increasingly complex, which has profoundly affected the process of international expansion. Developing countries’ voices are increasing because of the rise of China and other factors. How can Chinese enterprises effectively avoid the above threats and risks and seize development opportunities through a correct entry strategy? This paper puts forward practical suggestions.

Reference
  • 1. Anderson, E. &H. Gatignon.1986. Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies, 17(3): 1-26

    2. Brouthers, K. D. (2002). Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of International Business Studies, 33 (2), 203–221.

    3. Boisot, M. and Meyer, M.W. (2008), “Which way through the open door? Reflections on the internationalization of Chinese firms”, Management and Organization Review, Vol. 4 No. 3, pp. 349-365.

    4. Chen, S. F. S. (2008). The motives for international acquisitions: Capability procurements, strategic considerations, and the role of ownership structures. Journal of International Business Studies, 39

    5. Cui, L., & Jiang, F. (2010). Behind ownership decision of Chinese outward FDI: Resources and institutions. Asia Pacific Journal of Management, 27(4), 751-774.

    6. Dow, D., D. Baack and R. Parente (2018). "The role of psychic distance in entry mode decisions: Magnifying the threat of opportunism or increasing the need for local knowledge?" Global Strategy Journal 10(2): 309-334.

    7. Dikova, D., & Van Witteloostuijn, A. 2007. Foreign direct investment mode choice: Entry and establishment modes in transition economies. Journal of International Business Studies, 38: 013-1033.

    8. Chen, H., & Hu, M. Y. (2002). An analysis of determinants of entry mode and its impact on performance. International Business Review, 11(2), 193–210.

    9. Flores-Macías, G. A. and S. E. Kreps (2013). "The Foreign Policy Consequences of Trade: China’s Commercial Relations with Africa and Latin America, 1992–2006." The Journal of Politics 75(2): 357-371.

    10. Han, X. (2021). "Risk management, legitimacy, and the overseas subsidiary performance of emerging market MNEs." International Business Review 30(4): 101732.

    11. Hollender, L., F. B. Zapkau and C. Schwens (2017). "SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation." International Business Review 26(2): 250-263.

    12. Hoskisson, R. E., M. Wright, I. Filatotchev and M. W. Peng (2013). "Emerging Multinationals from Mid-Range Economies: The Influence of Institutions and Factor Markets." Journal of Management Studies 50(7): 1295-1321.

    13. Hill, C. W., Hwang, P., & Kim, W. C. (1990). An eclectic theory of the choice of international entry mode. Strategic Management Journal, 11, 117–128.

    14. Landau, C., Karna, A., Richter, A., & Uhlenbruck, K. (2016). Institutional leverage capability: Creating and using institutional advantages for internationalization. Global Strategy Journal, 6(1), 50–68.

    15. Li, J., K. E. Meyer, H. Zhang and Y. Ding (2018). "Diplomatic and corporate networks: Bridges to foreign locations." Journal of International Business Studies 49(6): 659-683.

    16. Luo, Y., Sun, J., & Wang, S. L. (2011). Emerging economy copycats: Capability, environment, and strategy. Academy of Management Perspectives, 25(2), 37–56.

    17. Luo, Y. and Wang, S.L. (2012), “Foreign direct investment strategies by developing country multinationals: a diagnostic model for home country effects”, Global Strategy Journal, Vol. 2 No. 3, pp. 244-261

    18. Morschett, D., Schramm-Klein, H., & Swoboda, B. (2010). Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice? Journal of International Management, 16, 60–77.

    19. Nuruzzaman, N., D. Singh and A. S. Gaur (2020). "Institutional support, hazards, and internationalization of emerging market firms." Global Strategy Journal 10(2): 361-385.

    20. Root, F. R. (1987). Entry strategies for international markets. Lexington Books. Rundh, B. (2007). International marketing behavior amongst exporting firms. European Journal of Marketing, 41(1/2), 181–198.

    21. Scott, W. R. (2014). Institutions and organizations: Ideas, interests, and identities (4ed.). Thousand Oaks, CA: Sage Publications.

    22. Simon J.Evenett and Johannes Fritz, Global Trade Plateaus: The 19th Global Trade Alert Report, London: CEPR Press, 2016, pp. 29~ 30,119

    23. Suddabtm, R., Bitektine, A., & Haack, P. (2017). Legitimacy. Academy of Management Annals, 11(1), 451–478.

    24. “Trump’s Protection Plan to Keep‘Competitor’China at Bay,”Financial Times,February 25,2018,available at: https: //www.ft.com/content /a3870776-1724-11e8-9e9c-25c814761640.

    25. Voss, H., Buckley, P., and Cross, A. (2010), “The impact of home country institutional effects on the internationalization strategies of Chinese firms”, Multinational Business Review, Vol. 18 No. 3, pp. 25–48.

    26. Wei, Z. Y. 2010. The literature on Chinese outward FDI. Multinational Business Review, 18: 73-112

    27. Xie, Z., & Li, J. (2017). Selective imitation of compatriot firms: Entry mode decisions of emerging market multinationals in cross-border acquisitions. Asia Pacific Journal of Management, 34(1), 47-68.

    28. Yan, Z. J., Zhu, J. C., Fan, D., & Kalfadellis, P. (2018). An institutional work view toward the internationalization of emerging market firms. Journal of World Business, 53(5), 682–694

    29. Zahra, S. A., Ireland, R. D., & Hitt, M. A. (2000). International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. The Academy of Management Journal, 43(5), 925– 950.