Abstract
PurposeThe aim of this article is to describe Huawei's internationalization process in Venezuela and show how socio-political and economic conditions helped to expedite the company's development in this Latin American nation between 2006 and 2019. Through this internationalization process, Huawei participated in a large technological transition in Venezuelan telecommunications.Design/methodology/approachThis research uses an integrative approach, developing a quasi-case study from a review of the academic literature, contemporary news stories and institutional and practitioner documents.FindingsThe review indicates that Huawei was engaged in business with the Venezuelan phone company before its renationalization. Secondly, Huawei's internationalization was a beneficiary of the increased relations between the Venezuelan and Chinese governments, mainly through “oil for loans/goods” agreements. Lastly, this internationalization process includes wholly owned subsidiaries, direct export, greenfield and government joint ventures.Practical implicationsThis research provides an understanding to other firms and strategists about the benefits of strong bilateral economic relationships between home and host countries.Originality/valueThis paper is among the first academic articles that describe the internationalization process of Huawei in Venezuela. Considering the host country's changing political and economic conditions during the last 20 years, such research may provide a perspective for considering other Chinese business expansions in Venezuela and Latin America.
Highlights
Introduction and literature reviewThe internationalization of Chinese enterprises into Latin America ( LATAM) has left deep footprints in the region
Huawei and other Chinese telecom organizations such as ZTE, China Unicom and TP-Link have all increased their operations in the Latin America (LATAM) region (Avendano, Melguizo, & Miner, 2017)
In order to better understand the China-LATAM relationship, this paper examines the expansion of Chinese telecom multinational Huawei into Venezuela between 2006 and 2019
Summary
Introduction and literature reviewThe internationalization of Chinese enterprises into Latin America ( LATAM) has left deep footprints in the region. Chinese foreign direct investment (FDI) in LATAM increased significantly in the second decade of the 2000s compared to the previous decade. This is evident in Argentina, Brazil, Colombia, Peru, Ecuador and Venezuela (Chen & Perez Luden~a, 2014); in some cases, investment doubled from one year to another (Peters, 2019). Most of this FDI has gone to extraction industries and natural resources (Perez Luden~a, 2012), other sectors have been impacted, including the telecom sector (Salidjanova, 2011).
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