Asset-seeking investment by Chinese multinationals: Firm ownership, location,and entry mode
Citation
Export citationLiu, J. & Scott-Kennel, J. (2011). Asset-seeking investment by Chinese multinationals: Firm ownership, location,and entry mode. Asia Pacific and Globalization Review, 1(1), 16-36.
Permanent Research Commons link: https://hdl.handle.net/10289/6381
Abstract
Chinese outward foreign direct investment (FDI), although still emergent, is rapidly growing, widely dispersed amongst host locations, and increasingly driven by asset-seeking motives. However, characteristics of Chinese Multinational Enterprises (MNEs) differ considerably – not only from counterparts in the West, but also within China’s institutional environment. Drawing on a survey of Chinese MNEs, the paper investigates differences in asset-exploratory behaviour by location and ownership. The results reveal Chinese MNEs are motivated to invest in specific locations for asset exploration: strategic assets in North America, relational assets in Asia, and natural assets in Latin American and Australasia. State-owned enterprises are more likely to possess experiential advantages and to invest for strategic asset-seeking motives, whereas non-state-owned enterprises invest to seek relational assets. Chinese MNEs with advantages relating to technology and experience are more likely to employ full-control modes of entry than those with advantages relating to guanxi. Implications for policy and practice are discussed.
Date
2011Type
Publisher
MacEwan
Rights
Institute of Asia Pacific Studies, Grant MacEwan University
Collections
- Management Papers [1139]