Determinants of internationalisation strategies: a study of Chinese multinational enterprises

Abstract

The surge of China's outward Foreign Direct Investment (FDI) in recent years has led to a strong research interest in the internationalisation of Chinese Multinational Enterprises (MNEs). A review of the literature reveals that the mainstream internationalisation theories need to be extended when applied to the Chinese context. This paper examines the factors that have significant impact on the choice of internationalisation strategies of Chinese MNEs. Our findings indicate that the internationalisation strategies of Chinese firms have neither followed the conventional mode nor have been determined by the psychic distance. Factors, such as the institutional environment and inward FDI, are found to be significant in understanding the internationalisation strategies of Chinese MNEs.