State versus private MNCs from China: initial conceptualizations
Abstract
Purpose
The purpose of this paper is to develop initial conceptualizations on two types of Chinese multinational corporations (MNCs), that is, state‐ and privated‐owned MNCs, in terms of internationalization motivation, entry strategy, and managerial capabilities.
Design/methodology/approach
This is a conceptual paper. Existing case studies are cited as illustrations.
Findings
Compared to Chinese private MNCs, state MNCs are more likely to be driven by internationalization motives that are not based on economic rationality, to adopt an integrated entry strategy, but less likely to contain dynamic capabilities necessary for competing internationally. In the short run, Chinese private MNCs should outperform their state counterparts, which however does not necessarily translate into better survival rate.
Research limitations/implications
The conceptualizations advanced in this paper should be tested empirically in future studies.
Practical implications
Given the differences between state and private Chinese MNCs, it would be a mistake for Western governments and the private sector to treat all Chinese MNCs as equals. Particularly, the concern about the private Chinese firms should place more emphasis on their capabilities to compete and collaborate as autonomous economic entities.
Originality/value
While much research attention has been given to “Chinese MNCs,” the author makes a distinction between state versus private MNCs from China and compares the two types with regards to internationalization motives, entry strategy, managerial capabilities, and performance potentials.
Keywords
Citation
Lin, X. (2010), "State versus private MNCs from China: initial conceptualizations", International Marketing Review, Vol. 27 No. 3, pp. 366-380. https://doi.org/10.1108/02651331011048023
Publisher
:Emerald Group Publishing Limited
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