Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-22T16:36:15.612Z Has data issue: false hasContentIssue false
  • English
  • Français

Chinese Outward Foreign Direct Investment Performance: The Role of Learning

Published online by Cambridge University Press:  25 June 2015

Marjorie Lyles ,
Dan Li  and
Haifeng Yan
Marjorie Lyles
Affiliation:
Indiana University, USA Lancaster University, UK UIBE, China
Dan Li
Affiliation:
Indiana University, USA
Haifeng Yan
Affiliation:
East China University of Science and Technology, China
Get access Rights & Permissions [Opens in a new window]

Abstract

We define the ‘Chinese way’ of internationalization as oriented toward experimental learning, in contrast to traditional internationalization models, such as the Uppsala model. Analyses of survey data of private Chinese firms that have made outward foreign direct investments (OFDI) show that only 50 percent follow the Uppsala model in which firms follow a staged approach. The other 50 percent follow more risky explorative OFDI approaches in which the firms learn on the ground experimentally from their OFDI. We further investigate how the founders’ congenital learning, firms’ inward international experience, potential absorptive capabilities, and motivations to learn, influence OFDI performance and how learning outcomes mediate these relationships. We show that the relationship between the firm’s potential absorptive capacity and its OFDI performance is fully mediated by what the firm learned from the OFDI project. Also the firm’s motivation to learn directly affects performance and is partially mediated by what the firm has learned.

摘要

摘要

相较于传统的国际化理论，如乌普萨拉模型，我们提出‘中国式’国际化的概念，并将其定义为试验性学习导向的国际化。调查数据分析显示，200家从事对外直接投资的中国民营企业中，50%的样本企业遵循了‘阶段式’的乌普萨拉模型，另外50%则采用试验性学习这样一种更加冒险的对外直接投资方式。我们进一步考察了创始人的先期学习、内向国际化经验、潜在吸收能力和学习动机对企业绩效的影响，以及学习结果在其中扮演的中介角色。研究表明，企业对外直接投资中的学习结果在潜在吸收能力和绩效之间，起到了完全中介的作用；学习动机直接影响了绩效且部分受到学习结果的中介。

Keywords

Chinese private firmsemerging economieslearningoutward foreign direct investment中国民营企业新兴经济体学习对外直接投资
Type
Regular Articles
Information
Management and Organization Review , Volume 10 , Issue 3 , November 2014 , pp. 411 - 437
Copyright
Copyright © International Association for Chinese Management Research 2014

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aitken, B., Hanson, G., & Harrison, A. 1997. Spillovers, foreign investment, and export behavior. Journal of International Economics, 43(1–2): 103–132.CrossRefGoogle Scholar
Alon, I., Child, J., Li, S., & McIntyre, J. R. 2011. Globalization of Chinese firms: Theoretical universalism or particularism. Management and Organization Review, 7(2): 191–200.CrossRefGoogle Scholar
Bagozzi, R. P. 1980. Causal models in marketing. New York: Wiley.Google Scholar
Baron, R. M., & Kenny, D. A. 1986. The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6): 1173–1182.CrossRefGoogle ScholarPubMed
Bartlett, C. A., & Ghoshal, S. 2000. Going global: Lessons from late movers. Harvard Business Review, March–April: 132–142.Google Scholar
Batjargal, B., & Liu, M. 2004. Entrepreneurs’ access to private equity in China: The role of social capital. Organization Science, 15(2): 159–172.CrossRefGoogle Scholar
Bell, J. 1995. The internationalization of small computer software firms: A further challenge to ‘stage’ theories. European Journal of Marketing, 29(8): 60–75.CrossRefGoogle Scholar
Bengtsson, L. 2004. Explaining born globals: An organizational learning perspective on the internationalization process. International Journal of Globalisation and Small Business, 1(1): 28–41.CrossRefGoogle Scholar
Bingham, C. B. 2009. Oscillating improvisation: How entrepreneurial firms create success in foreign market entries over time. Strategic Entrepreneurship Journal, 3(4): 321–345.CrossRefGoogle Scholar
Boeker, W. 1989. Strategic change: The effects of founding and history. Academy of Management Journal, 32(3): 489–515.Google Scholar
Boisot, M. 2004. Notes on the internationalization of Chinese firms. Unpublished paper, Barcelona: Open University of Catalonia.Google Scholar
Boisot, M., & Meyer, M. W. 2008. Which way through the open door? Reflections on the internationalization of Chinese firms. Management and Organization Review, 4(3): 349–365.CrossRefGoogle Scholar
Brush, C. G. 1995. International entrepreneurship: The effect of firm age on motives for internationalization. New York: Garland Publishing.Google Scholar
Buckley, P. J., Clegg, L. J., Cross, A. R., Liu, X., Voss, H., & Zheng, P. 2007. The determinants of Chinese outward foreign direct investment. Journal of International Business Studies, 38(4): 499–518.CrossRefGoogle Scholar
Burpitt, W. J., & Rondinelli, D. A. 2000. Small firms’ motivations for exporting: To earn and learn? Journal of Small Business Management, 38(4): 1–14.Google Scholar
Chang, S.-J., van Witteloostuijin, A., & Eden, L. 2010. Common method variance in international business research. Journal of International Business Studies, 41: 178–184.CrossRefGoogle Scholar
Chetty, S., & Campbell-Hunt, C. 2003. Paths to internationalization among small- and medium-sized firms. A global versus regional approach. European Journal of Marketing, 37(5/6): 796–820.CrossRefGoogle Scholar
Child, J. 1997. Strategic choice in the analysis of action, structure, organisations and environment: Retrospect and prospect. Organization Studies, 18(1): 43–76.CrossRefGoogle Scholar
Child, J., & Rodriques, S. B. 2005. The internationalization of Chinese firms: A case for theoretical extension. Management and Organization Review, 1(3): 381–410.CrossRefGoogle Scholar
Churchill, N. C., & Lewis, V. L. 1983. The five stages of small business growth. Harvard Business Review, 61(3): 30–50.Google Scholar
Cohen, W. M., & Levinthal, D. A. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1): 128–152.CrossRefGoogle Scholar
Cuervo-Cazurra, A., & Genc, M. 2008. Transforming disadvantages into advantages: Developing country MNEs in the least developed countries. Journal of International Business Studies, 39(6): 957–979.CrossRefGoogle Scholar
Deng, P. 2013. Chinese outward direct investment research: Theoretical integration and recommendations. Management and Organization Review, 9(3): 513–539.CrossRefGoogle Scholar
Dhanaraj, C., Lyles, M. A., Steensma, H. K., & Tihanyi, L. 2004. Managing tacit and explicit knowledge transfer in IJVs: The role of relational embeddedness and the impact on performance. Journal of International Business Studies, 35(5): 428–442.CrossRefGoogle Scholar
Dunning, J. 1988. The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1): 1–31.CrossRefGoogle Scholar
Fang, T. 2003. A critique of Hofstede’s fifth national culture dimension. International Journal of Cross Cultural Management, 3(3): 347–368.CrossRefGoogle Scholar
Fang, T. 2012. Yin Yang: A new perspective on culture. Management and Organization Review, 8(1): 25–50.CrossRefGoogle Scholar
Fernhaber, S. A., & Li, D. 2012. International exposure through network relationships: Implications for new venture internationalization. Journal of Business Venturing, 28(2): 316–334.CrossRefGoogle Scholar
Fernhaber, S. A., McDougall-Covin, P. P., & Shepherd, D. A. 2009. International entrepreneurship: Leveraging internal and external knowledge sources. Strategic Entrepreneurship Journal, 3(4): 297–320.CrossRefGoogle Scholar
Fornell, C., & Larcker, D. F. 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1): 39–50.CrossRefGoogle Scholar
Forsgren, M. 2002. The concept of learning in the Uppsala internationalization process model: A critical review. International Business review, 11(3): 257–277.CrossRefGoogle Scholar
Gu, Q., & Lu, J. W. 2011. Effects of inward investment on outward investment: The venture capital industry worldwide 1985–2007. Journal of International Business Studies, 42: 263–284.CrossRefGoogle Scholar
Gupta, A. K., & Sapienza, H. J. 1992. Determinants of venture capital firms’ preferences regarding the industry diversity and geographic scope of their investments. Journal of Business Venturing, 7(5): 347–362.CrossRefGoogle Scholar
Harrison, D., McLaughlin, M., & Coalter, M. T. 1996. Context, cognition, and common method variance: Psychometric and verbal protocol evidence. Organizational Behavior & Human Decision Processes, 68(3): 246–261.CrossRefGoogle Scholar
Hedlund, G., & Kverneland, A. 1985. Are strategies for foreign markets changing? The case of Swedish investment in Japan. International Studies of Management & Organization, 15(2): 41–59.CrossRefGoogle Scholar
Hofstede, G. 1980. Culture’s consequences: International differences in work-related values. Beverly Hills, CA: Sage.Google Scholar
Huber, G. P. 1991. Organizational learning: The contributing processes and the literatures. Organization Science, 2(1): 88–115.CrossRefGoogle Scholar
Hutzschenreuter, T. H., Pedersen, T., & Volberda, H. W. 2007. The role of path dependency and managerial intentionality: A perspective on international business research. Journal of International Business Studies, 38(7): 1055–1068.CrossRefGoogle Scholar
Hymer, S. H. 1976. The international operations of national firms: A study of direct foreign investment. Cambridge, MA: MIT Press.Google Scholar
Jansen, J. P., Van den Bosch, F. A. J., & Volberda, H. W. 2005. Managing potential and realized absorptive capacity: How do organizational antecedents matter? Academy of Management Journal, 48(6): 999–1015.CrossRefGoogle Scholar
Jantunen, A., Nummerla, N., Puumalainen, K., & Saarenketo, S. 2008. Strategic orientations of born globals – do they really matter? Journal of World Business, 43(2): 158–170.CrossRefGoogle Scholar
Johanson, J., & Vahlne, J. 1977. The internationalization process of the firm – a model of knowledge development and increasing foreign market commitment. Journal of International Business Studies, 8(1): 23–32.CrossRefGoogle Scholar
Johanson, J., & Vahlne, J. 2009. The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40: 1411–1431.CrossRefGoogle Scholar
Jolly, V. K., Alahuhta, M., & Jeannet, J.-P. 1992. Challenging the incumbents: How high technology start-ups compete globally. Journal of Strategic Change, 1(2): 71–82.CrossRefGoogle Scholar
Kropp, F., Lindsay, F., & Shoham, A. 2006. Entrepreneurial, market, and learning orientations and international entrepreneurial business venture performance in South African firms. International marketing Review, 23(5): 504–523.CrossRefGoogle Scholar
Lane, P. J., Salk, J., & Lyles, M. A. 2001. Absorptive capacity, learning, and performance in international joint ventures. Strategic Management Journal, 22(12): 1139–1161.CrossRefGoogle Scholar
Leonidou, L. C., Katsikeas, C. S., & Piercy, N. F. 1998. Identifying managerial influences on exporting: Past research and future directions. Journal of International Marketing, 6(2): 74–102.CrossRefGoogle Scholar
Levitt, B., & March, J. G. 1988. Organizational learning. Annual Review of Sociology, 14: 319–340.CrossRefGoogle Scholar
Li, J., & Tang, Y. 2010. CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal, 53(1): 45–68.CrossRefGoogle Scholar
Lu, J., Liu, X., & Wang, H. 2011. Motives for outward FDI of Chinese private firms: Firm resources, industry dynamics, and government policies. Management and Organization Review, 7(2): 223–248.CrossRefGoogle Scholar
Luo, Y., & Tung, R. L. 2007. International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(4): 481–498.CrossRefGoogle Scholar
Lyles, M. A., & Salk, J. E. 1996. Learning from foreign parents in international joint ventures: An empirical examination in the Hungarian context. Journal of International Business Studies, 27(6): 1139–1162.CrossRefGoogle Scholar
Madsen, T. K., & Servais, P. 1997. The internationalization of born globals: An evolutionary process. International Business Review, 6(6): 561–583.CrossRefGoogle Scholar
March, J. G. 1991. Exploration and exploitation in organizational learning. Organization Science, 2(1): 71–87.CrossRefGoogle Scholar
Mathews, J. A. 2006. Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23(1): 5–27.CrossRefGoogle Scholar
McDougall, P. P., Shane, S., & Oviatt, B. M. 1994. Explaining the formation of international new ventures: The limits of theories from international business research. Journal of Business Venturing, 9(6): 469–487.CrossRefGoogle Scholar
Meyer, J. W., & Rowan, B. 1977. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2): 340–363.CrossRefGoogle Scholar
Miles, R. E., & Snow, C. 1994. Fit, failure, and the hall of fame: How companies succeed or fail. New York: Free Press.Google Scholar
MOFCOM. 2008. Statistical bulletin of China’s outward foreign direct investment. Ministry of Commerce of People’s Republic of China, National Bureau of Statistics of People’s Republic of China, State administration of Foreign Exchange.Google Scholar
MOFCOM. 2012. Statistical bulletin of China’s outward foreign direct investment. Ministry of Commerce of People’s Republic of China, National Bureau of Statistics of People’s Republic of China, State administration of Foreign Exchange.Google Scholar
Moorman, C., & Miner, A. S. 1998. Organizational improvisation and organizational memory. Academy of Management Review, 23(4): 698–723.CrossRefGoogle Scholar
Neter, J., Wasserman, W., & Kutner, M. H. 1990. Applied linear statistical models. Homewood, IL: Irwin.Google Scholar
Nunnally, J. C., & Bernstein, I. H. 1994. Psychometric theory. New York: McGraw-Hill.Google Scholar
Oladottir, A. D. 2009. Internationalization from a small domestic base: An empirical analysis of foreign direct investments of Icelandic firms. Management International Review, 49(1): 61–80.CrossRefGoogle Scholar
Oviatt, B., & McDougall, P. P. 1994. Toward a theory of international new ventures. Journal of International Business Studies, 25(1): 45–64.CrossRefGoogle Scholar
Peng, M. W., & Luo, Y. 2000. Managerial ties and firm performance in a transition economy: The nature of a micro-macro link. Academy of Management Journal, 43(3): 486–501.Google Scholar
Petersen, B., Pedersen, T., & Lyles, M. A. 2008. Closing knowledge gaps in foreign markets. Journal of International Business Studies, 39(7): 1097–1113.CrossRefGoogle Scholar
Podsakoff, P. M., & Organ, D. W. 1986. Self-reports in organizational research: Problems and prospects. Journal of Management, 12(4): 531–544.CrossRefGoogle Scholar
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. 2003. Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5): 879–903.CrossRefGoogle ScholarPubMed
Ralston, D. A., Gustafson, D. J., Cheung, F. M., & Terpstra, R. H. 1993. Differences in managerial values: A study of U.S., Hong Kong and PRC managers. Journal of International Business Studies, 24(2): 249–275.CrossRefGoogle Scholar
Reuer, J., Zollo, M., & Singh, H. 2002. Post-formation dynamics in strategic alliances. Strategic Management Journal, 23(2): 135–151.CrossRefGoogle Scholar
Sapienza, H. J., Autio, E., Geroge, G., & Zahra, S. A. 2006. A capabilities perspective on the effects of early internationalization on firm survival and growth. Academy of Management Review, 31(4): 914–933.CrossRefGoogle Scholar
Vera, D., & Crossan, M. 2004. Strategic leadership and organizational learning. Academy of Management Review, 29(2): 222–240.CrossRefGoogle Scholar
Xu, D., & Meyer, K. E. 2013. Linking theory and context: ‘Strategy research in emerging economies’ after Wright et al. (2005). Journal of Management Studies, 50(7): 1322–1346.Google Scholar
Yiu, D. W., Lau, C. M., & Burton, G. D. 2007. International venturing by emerging economy firms: The effects of firm capabilities, home country networks, and corporate entrepreneurship. Journal of International Business Studies, 38(4): 519–540.CrossRefGoogle Scholar
Young, S., Huang, C.-H., & McDermott, M. 1996. Internationalization and competitive catch-up processes: Case study evidence on Chinese multinational enterprises. Management International Review, 36(4): 295–314.Google Scholar
Zaheer, S. 1995. Overcoming the liability of foreignness. Academy of Management Review, 27(2): 341–363.Google Scholar
Zahra, S., & Hayton, J. C. 2008. The effect of international venturing on firm performance: The moderating influence of absorptive capacity. Journal of Business Venturing, 23(2): 195–220.CrossRefGoogle Scholar
Zahra, S. A., & George, G. 2002. Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2): 185–203.CrossRefGoogle Scholar
Zollo, M. 2004. Superstitious learning revisited: Outcome ambiguity and confidence traps in corporate acquisitions. Paper presented at the Nordic Workshop in International Business.Google Scholar