A typology of market-seeking investments: Swedish firms in China

Abstract

Purpose Regarding globalization trends, it is essential for multinational corporations (MNCs) to operate in China if they are to succeed in the international business environment. It is therefore vital to study how those MNCs investing in China have fared. The purpose of this paper is to devise a robust conceptual framework for the evolvement of market-seeking investments in emerging markets. Design/methodology/approach The typology is based on a network approach to internationalization processes, where a case study is made of Swedish MNCs’ experience of the Chinese market. Findings The case study contributes to the mostly static foreign direct investment (FDI) theory as well as the entry mode approach, both of which have paid little attention to the FDI carried out by MNCs in emerging markets 5–15 years after initial entry. Originality/value The case study also contributes to the mostly static FDI theory as well as the entry mode approach, both of which have paid little attention to the various types of FDI carried out by MNCs in emerging markets 5–15 years after initial entry.