Publications of Wong MNC Center Staff and Research Fellows

The Home Country of the MNE: The Case Of Emerging Economy Firms

Besant Hobdari, Peter Gammeltoft, Jing Li, and Klaus Meyer

Research on multinational enterprises that originate from emerging economies has highlighted the importance of the home country for firms’ strategies of internationalization. In this paper, the authors outline a simple analytical framework linking institutions and resource munificence in the home country to the domestic business eco-system in an emerging economy, and thereby to strategies of outward investments.

International Business Responses to Institutional Voids

Jonathan Doh, Suzana Rodrigues, Ayse Saka-Helmhout, and Mona Makhija

For nearly two decades, scholars have explored the implications of “institutional voids” for firm strategy and structure. Although institutional voids offer both opportunities and challenges, they have largely been associated with firms’ efforts to avoid or mitigate institutional deficiencies and reduce the transaction costs associated with operating in settings subject to those institutional shortcomings.

Dynamic Embeddedness In Chinese Firm Internationalization

Christoph Lattemann, Ilan Alon, Francesca Spigarelli, and Svetla Trifonova Marinova

This co-authored piece presents a multilevel framework to analyze the motivations and location choices of Chinese OFDIs. It contributes to theory-integration on Chinese OFDI flows and patterns by offering a framework that combines country-, industry- and firm-level analyses and by reflecting aspects from the resource-based view (firm-specific advantages), institutional-based view (push/pull home- and host-country factors), and network-based view (network relations).

Chinese FDI to Germany in the Renewable Energy Sector: Pre- and Post-Entry Psychic Distance Perceptions on Regulations-Related Dimensions

Katiuscia Vaccarini, Christoph Lattemann, Francesca Spigarelli, and Ernesto Tavoletti

Countries differ on various dimensions such as culture, language, business practices, policymaking, and regulation. Research shows that the amount of "distance" between countries on these dimensions impacts foreign direct investments (FDI) flows. Specifically, the greater the distance the greater the difficulties for investors. In this paper, the authors analyze the perception of "psychic distance" (PD) between China and Germany, by surveying Chinese managers who invested in Germany in the renewable energy (RE) sector.

The Future of Sino-Iran Relations

Manochehr Dorraj

Iran and China's expanding economic and political relations have a significant regional and global impact that as of yet has not received much scholarly scrut iny. This chapter examines the historical roots, evolution, and development of the Sino-Iranian relationship with a special emphasis on post 1979 period. Many bilateral economic and political issues bind the two nations, such as trade in arms, energy, manufactured goods, and technology. But this relationship also has a political and strategic dimension that serves both nations well. Based on the analysis of the present dynamics, I speculate on possible future trends.

Multinationals and Foreign Investment Policies in a Digital World

Lorraine Eden

The purpose of this paper is to discuss the future of the multinational enterprise (MNE) and implications for the international investment regime. The paper begins by summarising current thinking on multinationals and their motivations for foreign direct investment (FDI). It argues that two “winds of change” – emerging market multinationals and the digital economy – are shattering the traditional view of MNEs and FDI.

Chinese FDI in the EU: Learning from the Renewable Energy Sector

Francesca Spigarelli and Ping Lv

Chinese outward foreign direct investment (COFDI) in the European Union (EU) is serving to integrate the Chinese and EU renewable energy sectors and also is playing an important role in addressing each party’s unique economic and technological challenges in the sector. Regarding challenges, China has become a vital source of support for EU firms at a time when the EU struggles to attract global investment flows in the wake of the 2008 global economic crisis.

Institutions, Labor Mobility, and Foreign Direct Investment in China and India

Yu Zheng

Why did China and India, despite their similar natural factor endowments and growth trajectories, attract different types of FDI? This article shows that microlevel institutions in China and India, particularly a set of regulations governing labor and land markets, shape their domestic labor mobility and consequently affect their FDI patterns and development paths. China’s high labor mobility motivates foreign firms to concentrate in labor-intensive manufacturing and exploit the benefits of scale economies.

中国与拉丁美洲关系的转型 (The Transformation of China-Latin America Relations)

Dr. Benjamin Creutzfeldt

The growing presence in Latin America of Chinese companies, private and state-owned, impacts on China’s international image globally, for in spite of the growing diversity of actors involved, the Western public, their media and governments, tend to conceive of China as a unified actor. Indeed, this is a perception encouraged by Beijing’s leaders when they tour the region.

Subnational Institutions and Outward FDI by Chinese Firms

Victor Zitian Chen, Jing Li, and Daniel M. Shapiro

This study extends the classic country-specific advantage (CSA) – firm-specific advantage (FSA) framework by integrating an institution-based view of CSAs into the discussion of FSAs. In his classic CSA – FSA framework, Alan Rugman suggests that successful multi-national enterprises (MNEs) are often built on the interaction between strong FSAs and strong CSAs at home.

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