Ping Deng

Outward investment by Chinese MNCs: Motivations and implications

ince 1978, when it opened its doors to the world,China has achieved spectacular success in attract-ing foreign direct investment. In 2002, it sur-passed the US as the largest recipient of FDI in the world.However, investment has not been flowing in just onedirection. According to the World Bank (1997), in themid-1990s China was the largest outward investor amongdeveloping countries and the eighth largest supplier ofoutward investment among all countries. As

The Internationalization of Chinese Firms: A Critical Review and Future Research

The important phenomenon that the internationalization of Chinese firms (ICF) represents has attracted increasing interest from scholars from multiple fields over the past 20 years (1991–2010). Although this proliferation of research has the potential to significantly improve understanding of Chinese multinational enterprises (MNEs), the necessary step of consolidating and integrating extant knowledge is absent. This paper reviews the scholarship on the ICF and offers insights into the specific areas in critical need of further development. By focusing on articles published in major scholarly journals during the period 1991–2010, the authors develop a coherent framework to organize and review conceptual and empirical findings from disciplines as far ranging as management, international business, cross‐culture and area studies. Within the reviewed literature, three primary streams of enquiry are identified which focus on the antecedents, processes and outcomes of the ICF. Achievements within each of the three research streams are carefully reviewed using content analysis, whereby a number of important issues are identified which have remained consistently untouched, and recommendations are provided for future research, aimed at developing a more integrated research agenda on the ICF for management and international business scholars.

Chinese Outward Direct Investment Research: Theoretical Integration and Recommendations

This article reports a detailed analysis of 138 peer-reviewed articles in 41 journals published in the last 12 years (2001-2012) that focus on Chinese outward foreign direct investment from a theoretical advancement perspective. It assesses how the topic has been explored both conceptually and empirically and identifies the substantive contributions to the literature using a thematic analysis. The article argues that research on the international expansion of Chinese multinational corporations offers a unique opportunity to extend and develop extant theorizing in four primary research streams: the latecomer perspective; Chinese state and government influences; the dynamics of firms and institutions; and the liability of foreignness. Building on the results of this analysis, the article offers five recommendations as promising ways to open up theoretical inquiry: (1) cross-fertilization among the four research streams; (2) integration of resource- and institution-based theories with other theoretical lenses; (3) research on the process dimensions using a longitudinal approach; (4) adoption of multi-levels of analysis; and (5) consideration of the wider emerging market literature.

Foreign Investment by Multinationals from Emerging Countries: The Case of China

China has become a leading foreign investor among all emerging countries, however, the existing literature seldom deals with this important topic. Based upon both macro and micro data, this paper attempts to fill this gap. In particular, the paper focuses on such critical issues on the topic: What are the motivations for Chinese multinationals to invest abroad? While investing abroad, how do they differ from others? And how do FDI theories explain the investment activities? The results of this study shed some light on the question of foreign investment by Chinese companies, thereby contributing to the existing literature on multinationals from emerging countries.China has become a leading foreign investor among all emerging countries, however, the existing literature seldom deals with this important topic. Based upon both macro and micro data, this paper attempts to fill this gap. In particular, the paper focuses on such critical issues on the topic: What are the motivations for Chinese multinationals to invest abroad? While investing abroad, how do they differ from others? And how do FDI theories explain the investment activities? The results of this study shed some light on the question of foreign investment by Chinese companies, thereby contributing to the existing literature on multinationals from emerging countries.

Chinese Cross-Border M&A: Past Achievement, Contemporary Debates and Future Direction

Abstract This chapter focuses on the Chinese cross-border merger and acquisition (M&A) amid the rising trend of multinational companies from emerging economies. Based on a systematic review of published papers in top international business/strategy/organization journals on Chinese overseas M&A, we offer a tentative multilevel framework to consolidate the past achievement, consider contemporary debates, so as to direct future research efforts. We suggest that Chinese overseas M&A research should emphasize on a process perspective ranging from pre-acquisition to post-acquisition. In addition, qualitative research and methodological pluralism should be embraced to achieve this goal due to the nature of this emerging field of Chinese cross-border M&A. By allocating the extant literature into the multilevel framework, we articulate the demand and identify several potential topics for scholarly inquiry in the future in order to gain a nuanced understanding of this important phenomenon of Chinese cross-border M&A for both China and the rest of the world.

Absorptive capacity and a failed cross‐border M&A

Purpose – Chinese companies are increasingly using cross‐border mergers and acquisitions (M&A) to source knowledge or strategic assets. For many, global acquisitions have proven to be highly problematic and value‐destroying. The purpose of this paper is to address this critical acquisition failure issue from an absorptive capacity perspective.Design/methodology/approach – Guided by the framework that focuses on how acquiring a firms weak absorptive capacity damages its ability to assimilate, integrate and apply external new knowledge, one high‐profile Chinese failed acquisition: TCL acquisition of Frances Thomsons TV business in 2004 is analyzed empirically.Findings – Acquisition performance of Chinese overseas M&A is found to be substantially affected by the acquiring firms absorptive capacity at multiple dimensions. Research limitations/implications – The absorptive capacity construct provides an insightful account for differentials in Chinese overseas M&A performance.Practical implications – For de...

How does culture influence innovation? A systematic literature review

Purpose The purpose of this paper is to conduct a systematic literature review of the studies that have analyzed the impact of culture on innovation. Design/methodology/approach The authors carried out a systematic literature review of peer-reviewed articles in the past 37 years (January 1980-January 2017). Based on a total of 61 identified primary studies, the authors developed two clusters of culture definition studied in relation to innovation, including organizational culture and national culture. Findings After reporting the findings of the systematic literature review, the authors discuss how a variety of culturally related factors combine to facilitate or restrict innovation performance in their corresponding cluster. The findings highlight the complex and idiosyncratic relationship between culture and innovation. Future research lines are recommended. Research limitations/implications The authors adopt a systematic literature review method to probe into existing literature, inevitably missing some empirical studies. Implications for future research are suggested. Practical implications The paper offers interesting implications for managers and academia. For business practitioners, this study can provide a useful reference regarding the role of cultures in the corporate internal management or international operations; for scholars, the study can provide a current research landscape and development process in this field. Originality/value The findings are derived from a systematic literature review that has studied the influence of culture on innovation. In addition, implications and insights as to where future research might be usefully inquired in this field are provided.