Faculty Publications

Internationalization Within Networks: Exploring The Relationship Between Inward And Outward FDI In China’s Auto Components Industry

Document Type

Article

Keywords

Auto components, Business networks, China, Internationalization process model, Inward-outward FDI linkages

Journal/Book/Conference Title

Asia Pacific Journal of Management

Volume

34

Issue

1

First Page

69

Last Page

96

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.

Department

Department of Management

Original Publication Date

3-1-2017

DOI of published version

10.1007/s10490-015-9422-3

Repository

UNI ScholarWorks, Rod Library, University of Northern Iowa

Language

en

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