Internationalization of China's Privately Owned Enterprises

The following sections are included:

• Contents
• Preface
• Acknowledgments

China's private economy has experienced a very rapid growth since it adopted the policy of economic reform and opening up to the outside world at the end of 1978. The private sector has played a crucial role in the Chinese economy, especially in the coastal regions. China's opening up and integration into the world economy has facilitated the growth of its private sector. Related to this, the issue of internationalization of China's POEs has attracted much attention.We will present a theoretical basis for the research on the internationalization of Chinese privately-owned enterprises (POEs)…

The following sections are included:

• Progress of Enterprise Internationalization
  • Theoretical and empirical study of enterprise internationalization
  • Research on internationalization of China's enterprises
  • Conclusion
• Schools of Enterprise Internationalization
  • By international trade approach
  • By FDI approach
  • Theories concerning internationalization of developing countries
  • By a resource-based view
  • Theories of enterprise export behavior
  • Driving theory of multinational operations
  • Strategic management theory
  • Resource-based views of enterprise internationalization
  • Theory of INV
• Determinants and Pattern Selection
  • Network model of enterprise internationalization
  • The innovation-related internationalization models
  • Integration and responsiveness model
  • International environment factor model
  • Four-element model of enterprise internationalization
  • Inward–outward cross model of enterprise internationalization

A significant strategy for China's internationalization is to encourage domestic enterprises to go global. China, as a developing country, is initiating its outward foreign direct investment, in view of the fact that foreign direct investment policy institutionally safeguards the enterprises' international business. Therefore, perfect foreign direct investment policy mix is of significant importance, both in theory and practice, to facilitate the development of China's OFDI as well as to accelerate its internationalization process.

The following sections are included:

• Internationalization Process
  • Development path of China's POEs
  • Overview of internationalization of China's POEs
  • Features of internationalization of China's POEs
• Regional Features
  • Zhejiang Province
  • Other eastern regions
  • The Mid-western regions
• Outward Foreign Direct Investment (OFDI) Mode
  • OFDI pattern choices of China's POEs
  • Typical OFDI modes of China's POEs

Internationalization is the only way for a company to grow into an international enterprise. The development history of most Fortune 500 Companies demonstrates a similar growing path, which started from the domestic market, continued tomove toward theworld, and eventually ended up in the global market. Internationalization enables a company to acquire various resources from other countries, while the global market provides the company with an incomparable stage for further development. During the past 30 years with rapid economic growth, China has accumulated substantial wealth. Meanwhile, Chinese enterprises correspondingly have achieved rapid internationalization development. The 2008 financial crisis provided an extraordinary opportunity for Chinese firms to accelerate the internationalization process. More than 15,000 Chinese businesses setup overseas subsidiaries, which aggregately owned total assets of more than USD1 trillion. Nowadays, foreign investment of Chinese enterprises has gradually expanded from general exporting, catering, simple processing, to other advanced fields such as marketing network, resource development, shipping and logistics, manufacturing and R&D. The investment destinations include Europe, the United States, Hong Kong (SAR of China) and Macao (SAR of China), Asia, Africa, Latin America and other regions…

This chapter aims to determine the dependent variable and independent variables influencing the internationalization of indigenous Chinese privatelyowned enterprises (POEs), through literature review and a comparative case study. Optimal scaling regression has been employed to test the model developed in the survey conducted…

The following sections are included:

• Case Selection Statement
• Wanxiang Group: A New Technology Generator
  • Internationalization process
  • Internationalization strategy
  • Determinants of internationalization
• Transfar Group: A New Model of Sino-Japanese Joint Venture
  • Internationalization process
  • Internationalization strategy
  • Determinants of internationalization
• Holley Group: A Typical Example of Diversified Investment
  • Internationalization process
  • Internationalization strategy
  • Determinants of internationalization
• Youngor Group: A New Version of China's “Pierre Cardin“
  • Internationalization process
  • Internationalization strategy
  • Determinants of internationalization
• Summary
  • Comparison of internationalization modes
  • Determinants of internationalization

Various theories of enterprise internationalization and empirical studies of the internationalization in China's POEs show that the enterprise will get a better internationalization performance if it starts internationalization earlier and faces a domestic business environment which is close or homogenous to their international counterparts. Besides, internal factors, such as qualities of the entrepreneur, the size of the enterprise, the competitive strategy applied and years of internationalization, will significantly affect the performance of internationalization. The analysis of the internationalization of domestic enterprises and successful experiences of internationalization of enterprises in the developed countries in the previous chapters further confirm the conclusion…

The following sections are included:

• References
• Index