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Internationalization within networks: Exploring the relationship between inward and outward FDI in China’s auto components industry

Hertenstein, P.; Sutherland, D.; Anderson, J.

Internationalization within networks: Exploring the relationship between inward and outward FDI in China’s auto components industry Thumbnail


Authors

P. Hertenstein

J. Anderson



Abstract

We explore how the outward FDI strategies of Chinese auto component multinational corporations (MNCs) are shaped by sub-contracting supply relationships established with developed market MNCs. We argue the strong presence of foreign MNC business networks developed through prior inward FDI constitutes an important home country effect influencing the outward FDI strategies of emerging market MNCs. Using the updated internationalization process model, we show how commitment to business networks is a critical mechanism driving the internationalization trajectories of Chinese auto component MNCs. This includes geographic location choices to psychically distant developed markets, strategic asset seeking orientation, pace of internationalization, and entry mode decisions.

Citation

Hertenstein, P., Sutherland, D., & Anderson, J. (2017). Internationalization within networks: Exploring the relationship between inward and outward FDI in China’s auto components industry. Asia Pacific Journal of Management, 34(1), 69-96. https://doi.org/10.1007/s10490-015-9422-3

Journal Article Type Article
Acceptance Date Jun 12, 2015
Online Publication Date Aug 15, 2015
Publication Date Mar 1, 2017
Deposit Date Jun 18, 2015
Publicly Available Date Aug 15, 2016
Journal Asia Pacific Journal of Management
Print ISSN 0217-4561
Electronic ISSN 1572-9958
Publisher Springer
Peer Reviewed Peer Reviewed
Volume 34
Issue 1
Pages 69-96
DOI https://doi.org/10.1007/s10490-015-9422-3
Keywords Inward-outward FDI linkages, Business networks, Internationalization process model, Auto components, China.
Public URL https://durham-repository.worktribe.com/output/1403305

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