Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory

We argue that the extant literature tends to view that EMNEs do not have FSAs and in particular, innovation-based ownership advantages. This, however, is not a fact but a myth that deserves detailed examination. Drawing on a case study of four Chinese multinationals, we argue that some Chinese multinationals have brilliant innovation capabilities particularly in areas such as services-based innovation, architectural innovation and grafting innovation. This helps to explain their rapid rise and internationalisation. We therefore argue that Dunning’s OLI paradigm is still relevant in the context of EMNEs. However we also accept that the OLI paradigm needs to be taken with a complementary view that EMNEs also internationalise to augment their assets/capabilities. We call for further studies on EMNEs’ FSAs with a broader view of innovatio

Technological innovation as a source of Chinese multinationals’ firm-specific advantages and internationalization

This paper examines how innovation-related firm-specific ownership advantage (FSA) plays a role in developing the competitive advantage of Chinese multinationals when they internationalize. Based on a review of the existing literature concerning foreign direct investment by emerging economy multinational enterprises (EMNEs), we identify that numerous studies explain this phenomenon on the basis of their location-bound country specific advantages. However, such views do not fully explain the key underlying factors behind the rapid rise and success of many EMNEs as these firms rapidly internationalize and develop global competitiveness in developed markets. The current research explores three leading innovative Chinese EMNEs from the engineering sector: BYD, Sany Heavy Industry and CSR China. We find that their knowledge, and particularly their innovation-creating technological knowledge has contributed greatly to their successful internationalization. The illustrative cases show that the three firms have now moved beyond the infant to the mature stage of EMNE development through developing their technological knowledge in order to realize firm-specific advantage (FSA) through internationalization. This study helps in contributing fresh reflections to the continuing debate concerning the causes of internationalization and global competitive development by EMNEs and the role of their FSAs in these processes

Inward investment, employment and government policies in Wales

This empirical paper examines the links between multinational enterprises’ countries of origin, types of inbound foreign direct investment (IFDI), related capital investment levels and the resultant effects on regional employment in Wales, a peripheral region of the UK. Longitudinal, official data are used to examine the relationships between these variables, making use of statistical techniques. The findings are used to make recommendations for inward investment policy development in Wales, focusing on the targeting of IFDI from those countries of origin whose multinational enterprises appear likely to contribute most to the future creation and safeguarding of regional employment

Marketing in Russia by UK businesses: lessons from a survey of trade missioners to Moscow

This paper explores and analyses the findings from a survey of UK participants in a trade mission to Moscow, with reference to relevant academic literature. The focus is on their experience of doing business in transition economy (TE) country-markets (including Russia itself); their perceptions of Russian market opportunities and risks; their main sources of information and advice; and their strategies for Russian market entry and development. The findings suggest businesses with experience of TEs and Russia may be best placed to succeed in the Russian market, provided that they draw fully on the resultant lessons. Newcomers to the Russian market can maximise their chances of success by seeking out good information and advice, forging good contacts with Russian businesses, and by adopting a well-structured, but flexible approach to their marketing strategies. Official support agencies can help UK businesses to succeed in Russia by maximising the quantity and quality of the support, information and advice that they provide

Supporting Ethnic Community Businesses: Lessons from a West Midlands Asian Business Support Agency

Fallon G. and Berman Brown R. (2004) Supporting ethnic community businesses: lessons from a West Midlands Asian business support agency, Reg. Studies 38, 137-148. This paper contributes to the debate being conducted in academic and public policy-making circles concerning the promotion of work and self-employment opportunities from people facing social exclusion. Using data gathered from semi-structured interviews conducted in a West Midlands ethnic business support agency, the paper explores the nature and effectiveness of the support that it offers to members of the local Asian business community. The paper's findings point tentatively towards the strengths and weaknesses of the Agency's provision and the main environmental constraints upon its work. Tentative recommendations are also made for the future development of support for Asian businesses in the locality, focusing on the advantages of improved collaboration between locally-based business support providers.Ethnic community businesses, Support agencies, West Midlands, UK, Entreprises de la communaute ethnique, Agences d'assistance technique, West Midlands au Royaume-Uni, Unternehmen ethnisch andersartiger, Bevolkerungsgruppen, Unterstutzungsagenturen, West Midlands UK, Empresas de grupos etnicos, Agencias de apoyo, West Midlands (Reino Unido),