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Internationalization within networks: Exploring the relationship between inward and outward FDI in China’s auto components industry

Accepted version
Peer-reviewed

Repository DOI


Type

Article

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Authors

Hertenstein, Peter 
Sutherland, Dylan 
Anderson, John 

Abstract

We explore how the outward FDI strategies of Chinese auto component 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 internationalisation and entry mode decisions.

Description

This is the author accepted manuscript. The final version is available from Springer via https://doi.org/ 10.1007/s10490-015-9422-3

Keywords

Inward-outward FDI linkages, business networks, internationalization process model, auto components, China

Journal Title

Asia Pacific Journal of Management

Conference Name

Journal ISSN

0217-4561
1572-9958

Volume Title

34

Publisher

Springer Science and Business Media LLC