Chinese Multinational Companies Research Articles

Management of foreign personnel of Chinese multinational companies in the context of the COVID-19 pandemic: current state and problems

Management of foreign personnel of Chinese multinational companies in the context of the COVID-19 pandemic: current state and problems

Organisational Strategies for Competitive Advantage in the Construction Industry: Chinese Dominance in Southern Africa

Chinese enterprises are presently dominating various sectors of businesses abroad, offering a wide range of low to high-end quality products and services. The construction sector in Africa is now being dominated by Chinese multinational contractor companies, who find in Africa their next preferable market to grow. The available literature on the field has serious gaps in explaining which organisational strategies increase the competitive advantage and the market dominance of Chinese multinational contractors, especially in the Southern African region. This research aims to uncover the organisational strategies, implemented by Chinese multinational contractors operating in the Southern African region, who have paved the way and consolidated their success in the region. Through a mixed methods process, qualitative and quantitative data are obtained. The construction markets of the Southern African region are analysed (environmental analysis) and the main multinational Chinese contractors are identified, through a literature review and organisational analysis. Several organisational strategies are shortlisted and, finally, through an online questionnaire, the opinions of the participants to rank the organisational strategies previously identified in terms of contribution to the actual success, copying capability, etc., are carried out. The findings revealed that the capability to offer a lower price for construction services, the easy access to loans and funds from the organisation's home government and the capability to trade debt for local resources, such as wood, land and minerals are the organisational strategies that mostly contributed to the recent Chinese contractor dominance in the Southern African construction market.

Impact of knowledge sharing on job satisfaction and innovative work behavior: the moderating role of motivating language

PurposeThe purpose of this paper is to understand the influence of knowledge-sharing behavior (KSB) on the innovative work behavior (IWB) and job satisfaction (JS) among employees considering the moderating role of motivating language (ML) of supervisors.Design/methodology/approachThe hypothesized relationships were examined applying modeling of structural equation and hierarchical multiple regression analysis. The data was collected from Chinese multinational companies in Kazakhstan with final sample of 322 respondents.FindingsThe findings suggest that the link between KSB and JS is significantly positive with the moderating impact of ML, while KSB itself has significantly negative effect on JS. Moreover, ML buffers the insignificant effect of KSB on IWB.Originality/valueResearch is atypical, as it has focus on the moderating roles of ML in the direct relationship of employee KSB and JS, and in the direct linkage of employee KSB and IWB in Chinese multinational organization in the network field.

China’s Public Diplomacy Through the Utilization of Investment and Censorship in Hollywood (2012 – 2016)

The conduct of traditional public diplomacy was merely concerned on the engagement of state actors. Not to mention, diplomatic communication is only occurred between the government officials by intention to earned political changes in targeted countries. Recently, public diplomacy is mainly focused on the positive reputation building in the other country and is conducted through political and economic cooperation among two countries or more, by involving the non-state actors also. Starting from its economic reforms initiative, China is engaged in international trade and successfully became one of global economic powers. By its rapid raise, China is feared to be a national threat to other countries, be it politically, economically, or even for the national security. Even more, the Western media often portrays China’s image in a negative light. Hence, in improving its global image, China expands its global outreach by establishing cooperation with the United States film industry, Hollywood, that strengthen by the 2012’s Memorandum of Understanding upon film industry, also by implementing Chinese censorship policy, where negative portrayals of China is prohibited. The conduct of censorship itself would be supervised under state-ruled agency, the SAPPRFT, and is supported by the involvement of Chinese multinational companies investors. Through this research study, the effort of China’s public diplomacy on the utilization of Hollywood as the United States film industry would be proven through new public diplomacy theory. Further, the role of multinational corporations will be assessed due to its essential contribution in enhancing Chinese censorship in Hollywood films for its global release.

Identifying Factors That Hinder the Acceptance of Chinese Brands among US Consumers

China has become a major player in the global economy over the past decade. Recent political turmoil between China and the US coupled with the rising rates of China’s currency has prompted the Chinese government to invest in building brand equity among Chinese brand names (Si, 2014). In spite of mak-ing large financial investments, setting up corporate headquarters in the US, and receiving continuous government backing, Chinese multinational compa-nies (MNCs) have had little success with building brand equity in the US (Lipin, 2014; Gondhia, 2015). The purpose of this study was to identify factors that are hindering the acceptance of Chinese brand names among US consumers. A mixed-method, non-experimental design was used to identify common perceptions that US consumers have about Chinese brands. A survey contain-ing six quantitative and three qualitative questions was completed by 1287 US consumers who were age18 or older. Results revealed that a lack of awareness and recognition are the primary factors contributing to this phenomenon. In addition, it was discovered that brand trust was connected to perceived quality, reputation, familiarity, and quality control.

Влияние организационной культуры на трансфер знаний в рамках осуществления стратегии «один пояс - один путь»: Пример китайских компаний, участвующих в Китайско-Пакистанском Экономическом Коридоре (CPEC)

The purpose of this paper is to investigate the relationship between organizational cultural characteristics, knowledge transfer and the role of certain identified organizational cultural aspects in the execution of knowledge transfer in Chinese Multinational Companies involved in CPEC.A quantitative research plan was followed. A questionnaire was used to collect the desired data. For this study we identified six factors, including trust among colleagues, communication between organizational staff, information systems, formation of the reward system, and structure of the organization which plays an important and defining role in the interaction between staff members and in providing possibilities to sever barriers to knowledge transfer.A total of 27 organizations involved in the China Pakistan Economic Corridor (CPEC) are identified. The intended hypothesis was tested by using PLS-SEM, and our research finding indicates that all the variables except information systems did not show positive relationships.The study proposed that multinational organizations must understand the critical role of organizational culture and interaction among team members in promoting, sharing, and spreading knowledge to perform well and achieve organizational success thereafter.This study is anticipated to help Chinese MNCs in Pakistan to understand the different cultural characteristics because according to previous studies many multinational companies overlook the impact of culture factors on the sharing of knowledge, while bearing in mind that in the literature there is no specific study regarding Chinese MNCs involved in CPEC. The conclusion of this study will help out knowledge executives charged with the drawing of flexible knowledge management systems.

HR localization impacts on HCNs’ work attitudes

PurposeThe purpose of this paper is to investigate the impact of localized human resource management (LHRM) on host country nationals’ (HCNs) intention to remain (ITR) and extra-role performance (ERP) through the mediating role of person-organization fit (POF).Design/methodology/approachData were gathered from 494 employees in two Chinese subsidiaries in Iran via two-stage self-administered survey and analyzed with AMOS 21.FindingsThe results show that LHRM positively affected employees’ ITR and ERP. However, there was no significant relationship between LHRM and POF and between POF and ERP.Originality/valuePrevious studies in the international human resource management literature have focused more on Western and South Asian countries. The present study, to the best of our knowledge, is the first inquiry of its kind in an Iranian context. Hence, this paper contributes to the existing knowledge by testing LHRM in two large Chinese multinational companies in Iran. Additionally, the results of this study will increase our understanding of LHRM and provide practitioners with superior insights into some practices that could elevate HCNs’ ERP and ITR.

Tiered expatriation: A social relations approach to staffing multinationals

This article applies a social relations discourse to examine the use of expatriates in Chinese multinational companies (MNCs). Expatriates are analyzed based on two sets of social relations: the social functions of expatriates (which include the global function of capital and the collective function of labor) and the pathways of expatriation (which include intra‐ and interfirm transfers). In particular, the framework incorporates the collective function of labor into the analysis of expatriation, which has received limited attention in the existing international HRM literature. Conceptually, the social relations discourse allowed us to frame staffing in an open system in which HR practices involving expatriation are shaped by the intersections between the choices of MNCs, the actions of workers, and the mediation of institutional players. Empirically, this article presents three case studies of Chinese MNCs in Europe to illustrate the tiered expatriation of managerial staff, technicians, and operational workers from interchangeable sources of labor. The HR policy implications suggest greater diversity in the formation of international staffing for MNCs.

An Investigation into the Benefits of Investing in Chinese Multinational Companies

We provide a unique longitudinal analysis into firm-level multinationality of Chinese firms between 2002 and 2012 using two measures of multinationality—the Aggarwal, Berrill, Hutson and Kearney (2011, International Business Review, 20, 557–577) system and foreign sales as a percentage of total sales. We find that Chinese firms have low levels of multinationality with most foreign sales in the triad regions of Asia, Europe and North America. We use mean variance spanning tests to investigate the benefits from investing in Chinese multinational corporations (MNCs). We find that Chinese MNCs offer little diversification benefits to domestic investors and firms with greater multinationality levels do not result in greater benefits.

China’s “Going Global” Policy in Africa: An Exploratory Overview of an Evolving Policy Framework

<p><em>The pace of economic engagement between China and Africa has increased exponentially in recent years, fueled mostly by burgeoning trade and investment ties. This impressive transformation of Sino-African relations has been complimented significantly by China’s “Going Global” policy, resulting in a huge number and diversity of Chinese multinational companies on the African continent. This proliferation of Chinese companies in Africa has generated new opportunities and prospects for all stakeholders, but has also engendered a host of challenges. This has no doubt had a significant impact on both the making and shaping of China’s foreign policy in Africa, and subsequently China Africa relations as a whole. This study relies on an extensive review of available qualitative and quantitative data to gain insights into the complex institutional and operational framework behind Chinese government support for the international ambitions of Chinese companies in Africa. What are the motives behind Beijing’s “Going Global” Policy? Which key institutions are involved, and what policy tools are employed to encourage the overseas investments of Chinese companies? What are the key drivers behind Chinese companies’ foray into the African market</em><em> </em><em>and what are the implications for China Africa relations, both in the short-term and long-term? These and other essential questions are addressed in this paper.</em><em></em></p>

Unlocking Expatriates’ Job Creativity: The Role of Cultural Learning, and Metacognitive and Motivational Cultural Intelligence

ABSTRACTIn this article, we extend Amabile's componential theory of creativity to account for cross-cultural creativity by conceptualizing cultural learning as a crucial component in the creativity relevant process. We hypothesize a significant positive relationship between cultural learning and expatriates’ cross-cultural job creativity, and that this relationship will be enhanced by domain learning and the cultural distance between the host and home countries. Moreover, we propose that expatriates with higher metacognitive and motivational cultural intelligence will engage in greater cultural learning, which in turn will be related to job creativity. Data from 219 expatriate-supervisor dyads of 36 Chinese multinational companies reveal that metacognitive CQ and motivational CQ are indeed positive antecedents to cultural learning, which in turn positively relates to cross-cultural job creativity, especially for high domain learning expatriates who work in a foreign culture not vastly different from home. Our findings make significant contributions to the existing literature on creativity and provide nuanced understanding of the relationship between cultural intelligence, cultural learning and cross-cultural job creativity. Our findings also have important implications for expatriate management.

The Culture Variable Vis-\xe0-Vis Anti-bribery Law: A Grey Area in Transnational Corporate Criminal Liability

Cross-border transactions are generating corresponding globalisation of law enforcement efforts. Culture has significantly influenced the legal analysis of anti-bribery law. With the increase of transnational bribery, benefits from globalisation will be undermined unless an effective legal regime can mitigate the harm of bribery. It is perceived that corruption in China is more prevalent than in the West given its embedded place in Chinese culture. It is further alleged that Chinese multinational companies (MNCs) are taking advantage of an unlevel playing field, as they are not subject to stringently-enforced anti-bribery laws. This hypothesis creates a myriad of anti-bribery problems in terms of legislation and enforcement, which particularly manifest in China’s perceived cultural toleration of bribery. Cultural assumptions undermine the global anti-bribery regime and compromise potential collaborative anti-bribery efforts across jurisdictions in a rapidly globalizing world. The Chinese culture does not necessarily impede China’s criminalisation of paying bribes to foreign officials. It is argued that the cultural role should not be overestimated, otherwise the hazard of the ethnocentric engagement with the Chinese culture would affect the ability of foreign MNCs to integrate their global compliance programmes. Multinationals can only mitigate their exposure to criminal liability globally, provided that they comply robustly with anti-bribery laws of both home and host jurisdictions.

An Evaluation Approach of the Innovation Culture in a Chinese Multinational Company Located in Brazil

An Evaluation Approach of the Innovation Culture in a Chinese Multinational Company Located in Brazil

Moving from the developing to the developed: compensation disparities of Chinese expatriates

This research examines Chinese expatriates working in Chinese multinational companies subsidiaries in the United Arab Emirates. We identify three salient social referents used by Chinese expatriates to assess distributive justice, i.e. employees working in mainland China, locals from the host country, and employees working in developed country multinational companies in the host country. For each referent, we explore the determinants of perceived distributive justice. The results show that equity and non‐monetary rewards are stable and influential factors for perceived distributive justice. Compensation disparity vis‐à‐vis employees working in mainland China and in international multinational companies has a significant effect on perceived distributive justice. However, compensation disparity is not used when it comes to assessing perceived distributive justice compared to locals in the host country. Finally, our findings suggest that only equity and non‐monetary rewards have significant effects on expatriation satisfaction, not perceived distributive justice.

Exchange rate and Chinese outward FDI

ABSTRACTDid the exchange rate (ER) regime change that was announced by the Chinese government in 2005 lead to an increased sensitivity of Chinese multinational companies (MNCs) to ER fluctuations? To answer this question our article considers the effect of ER level, volatility and expectation on the Chinese outward foreign direct investment (OFDI) activities in 119 countries for a period of 2003–2013. We find striking evidence that Chinese Renminbi appreciation has a negative impact on Chinese outward FDI flows, and both higher ER volatility and expected depreciation encourage Chinese outward FDI flows. We introduce two complementary effects that explain these findings: repatriation effect and mercantilist effect. In view of the recent debate about the growing importance of Chinese Renminbi in the international transactions we believe that our research results shed light on the possible impact of ER policies on Chinese MNCs behaviour and global FDI distribution.

The global emergence of Chinese multinationals: A resource-based view of ownership and performance

We apply insights from the resource-based view to better understand the emergence of Chinese multinational companies (MNCs) and to investigate the determinants of their performance. We argue that state ownership and foreign-corporate ownership have played a role in providing Chinese MNCs with access to key resources to improve their performance. Moreover, given the dominant role of government policies in China, Chinese MNCs are more profitable when their ownership structures align more closely with attributes favored by government policies. Our findings provide strong support to our arguments. This study provides new insights into how ownership structure leads to heterogeneity in MNC performance.

An Initiative to Implement Open Innovation in R&D Department of a Chinese Multinational Company Located in Brazil

An Initiative to Implement Open Innovation in R&D Department of a Chinese Multinational Company Located in Brazil

"A moderated mediation model of CQ, knowledge acquisition and task performance"

In this study, we demonstrate that cultural intelligence (CQ) is essential for expatriates working in foreign subsidiaries; that is, expatriates who have higher CQ are better able to acquire knowledge and perform tasks, especially when knowledge is highly tacit and complex. A survey of 274 expatriate-supervisor dyads working in 106 overseas subsidiaries of Chinese multinational companies supports the hypothesized theoretical model. Specifically, CQ has the greatest effect on expatriates’ knowledge acquisition and subsequent task performance when knowledge is highly tacit and complex. The findings have theoretical and practical implications in the context of cross-border management.

Cross-country Business Engagement between China and India

In recent years, there has been increasing argument for studying the business environment through a research design focused on international business. Given the importance of China and India to the global economy and the lack of studies on Chinese and Indian multinational companies (MNCs) operating in each other's country, this paper aims to contribute by extending knowledge of the contextual factors that support or inhibit ventures, operations and growth of Chinese and Indian MNCs operating in each other's country. Meaningful implications include: first, the ‘context’ becomes the subject of investigation, instead of being just one of the elements in the research design; and second, Chinese and Indian business environments are mapped and analysed with reference to multiple contextual dimensions (i.e. market context, institutional context and organisational context) and illustrate the impact of these factors on the functioning and performance of the subsidiaries of Chinese and Indian MNCs.

Chinese Multinational Companies in Africa: The Human Rights Discourse

In this century, human rights have been transformed into a mainstream issue for multinational companies with a global presence. It is likely that a multipronged mechanism will imminently be demanded to ensure the accountability of economic actors responsible for human rights abuse. This paper places particular stress on the ostensibly prioritized objectives within international human rights arenas. A highly contentious debate revolves around whether China’s approach to ensuring human rights is in tandem with the West’s in helping Africa move forward or whether it will complicate the current playing field and even undermine the West’s long-standing credibility in relation to the protection of human rights. Relying heavily on instruments like the Alien Tort Statute (ats) has proved inadequate. A more promising path seems to be a comprehensive framework of hard law and soft law initiatives, along with other incentives.