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

Accepted version
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