Chinese Multinational Companies Research Articles

Chinese heritage speakers as language brokers in internship abroad

Abstract Focusing on four Chinese heritage speakers seeking internships while studying in China, this ethnographic multi-case study reveals how their linguistic ideologies can shape their life and work abroad. Drawing upon the theory of language ideology, findings show that heritage speakers were perceived as model Chinese speakers in the classroom, and their bilingual upbringing was also considered an asset by Chinese multinational companies. While the bilingual identity afforded them initial access to internship opportunities, in the workplace they were assigned language tasks (e.g., translation) rather than responsibilities aligned with their academic training. As this distribution of labor foregrounds heritage speakers’ bilingual identity, it places them into the peripheral role as language service providers in the corporate realm. By describing these perplexing experiences, our results provide a more nuanced understanding of heritage speakers’ experiences abroad and unpack the linguistic expectations and implications for those who seek internships while studying abroad.

Outward foreign direct investment and green innovation in Chinese multinational companies

This paper investigates the reverse green innovation spillovers of outward foreign direct investment (OFDI) in Chinese multinational companies and how environmental regulation stringency in host countries moderates the relationship between OFDI and green innovation. The empirical analysis is based on an integrated dataset of publicly listed firms from 2008 to 2018. The findings demonstrate a significantly positive relationship between OFDI and the green innovation performance of multinational companies. It is also shown that environmental regulation stringency in host countries positively moderates the relationship between OFDI and green innovation. Further analysis reveals the variation of the findings across multinational companies in host countries at different development stages, with different ownership and in industries with different pollution intensities. The observations in this paper imply that the institutional environment of investment destinations matters for reverse technology spillovers, particularly reverse green technology spillovers from OFDI.

Striving for sustainable development: The impact of corporate social responsibility on corporate performance of Chinese manufacturing multinationals in Africa

AbstractThe Forum of China‐Africa Cooperation benefits both China and Africa in tackling development issues. Increased foreign direct investment from China can specifically help to reduce Africa's struggles to meet its 2030 sustainable development goals. Due to insufficient global investment experience and stigmatization, Chinese multinational companies (MNCs) often experience unsatisfactory corporate performance in host countries. A successful strategy to mitigate stigma and be perceived by stakeholders as “legitimate” is through corporate social responsibility (CSR) engagement. Exploring how Chinese MNCs in Africa can achieve desirable corporate performance through CSR engagement is important to promote mutual benefits for both Chinese MNCs and African societies. This study aimed to contribute to emerging market CSR literature by examining the relationship between CSR engagement and corporate performance of Chinese manufacturing MNCs operating in Africa, with emphasis on moral legitimacy as a mediating factor and institutional distance as a moderating factor. Survey data were collected between June 2019 and January 2020 from a sample of 203 Chinese manufacturing MNCs subsidiaries in Africa. By using hierarchical regression and bootstrapping, we find that the positive relationship between CSR engagement and corporate performance is fully mediated by moral legitimacy gaining. This mediation effect is moderated by institutional distance. The results enrich our understanding of how Chinese manufacturing MNCs' corporate performance can be enhanced by addressing social challenges and promoting sustainable investment cooperation with African countries. These results are important for Chinese MNCs and authorities, as well as African public authorities when designing policies to promote China‐Africa sustainable investment cooperation.

The impact of the US–China trade war on domestic and multinational companies in China

AbstractThis short paper investigates whether the US–China trade war has a different impact on domestic and multinational companies in China. Using the Orbis database with the coverage of ownership structure, we can identify Chinese multinational companies that own foreign subsidiaries with at least 51% stake. Then, using a panel dataset of Chinese companies from 2011 to 2019, we compare revenues of multinational and domestic companies before and after the trade war. We have found that multinational companies have about 8% higher in revenue after the trade war than domestic ones. These findings are consistent with the recent literature on the real hedging channel that operation flexibility reduces the impacts of tariff shocks.

Does institutional distance affect cross-border acquisitions of China’s multinational companies?

This paper aims to examine the effect of institutional distance on the level of equity ownership. The sampling technique in this research used a purposive sampling technique. The sample of this research is cross-border acquisition transactions between Chinese multinational companies and target countries in the Southeast Asia region in the 2015 – 2019 period; thus, the total sample of this research is 32 transactions. The analysis technique in this study was Multiple Linear Regression with the Ordinary Least Square (OLS) model. The main finding of this study demonstrates that economic and geographical distance partially affect the level of equity ownership significantly. Meanwhile, administrative distance does not partially affect the level of equity ownership of the target company by Chinese multinational companies.

A Sustainable and Comprehensive Framework for Knowledge Transfer in MNCs: An Empirical Examination Based on Country, Company and Individual Levels of Chinese MNCs

The shift in business perspective helps test, extend, and build innovative management theory, then sustainably expand and enhance the understanding of business and management. The development of the global business model makes knowledge transfer not only focus on the process itself, but especially the knowledge transfer of multinational companies (MNCs). Thus, this study is based on the knowledge-based view (KBV) theory, using a sustainable perspective and establishing a spatial model, which includes three aspects: county, company, and employee. It has been mentioned many times in previous research that it is necessary to build such a comprehensive model and completely study the influence factors, while this study is the first to carry out an effective empirical way to test which levels have significant factors that impact the knowledge transfer of Chinese MNCs. Moreover, with the advancement of technology, such as video conference and remote online cooperation, whether human abilities and traits (cultural intelligence) still occupy a specific position, as the conclusions of previous studies have proved, is also a focus of this study. Therefore, this empirical study uses the partial least squares structural equation (PLS-SEM) to test the influence of different aspects on knowledge transfer in Chinese MNCs. Although this study just chose Chinese MNCs as the case, the comprehensive results make up and rediscover some tacit factors of the impact on knowledge transfer, and then support further sustainable research.

The Development of Telecom Equipment

The telecom equipment industry is one of the most competitive industries globally. It is characterized by a few big corporations that dominate the industry. The industry is also among the industries that have been leveraging Data Analytics, especially Big Data Analytics. One of the big players in this industry is Huawei. Huawei is a Chinese multinational company that is involved in the sale of production and sale of telecommunication equipment, smart devices, and various consumer electronics. This shows how Huawei applies Data Analytics to manage its human resource, accounting, and finance, product design and development, supply chain and logistics, sales and marketing, and support services. The report also makes predictions of what the future of Analytics will look like for this industry. It is predicted that data volume for companies will continue to grow, creating space issues. It is also projected that the use of machine learning will accelerate, and advanced analytics applications will be needed.

Internationalization of the Automotive Industry by Extending IOL3 model: A Case Study of Geely Automobile

Chinese companies have been heavily expanding their businesses globally during recent decades. In the literature, studies examine the dynamics behind their expansion strategies and build multinational Chinese companies called 'dragon multinationals.’ Pointing out the shortcomings of the ownership-locationinternalization (OLI) paradigm to explain the internationalization of these dragon multinationals, the linkage-leverage-learning (LLL) model was introduced by Mathews (2006). It was extended to the inward linkages-outward linkages-leveragelearning (IOL3) model by Lu et al. (2017). This paper aims to investigate forwarded linkages to understand how these linkages are utilized during further expansions of Chinese multinational companies (MNCs) in developing countries. Inward linkages that Geely gained through earlier acquisitions were studied through secondary sources. Then, Geely's latest acquisition of Proton was examined to identify forwarded linkages. Interviews were conducted with the management of Proton and its suppliers to define sources of know-how transferred to Proton and classify them as direct and indirect forwarded linkages.

Analysis of the Categories and Strategies of Cross-cultural Conflicts in the operating process of Chinese Multinational Enterprises in the United States

This paper with its focus on Chinese Multinational enterprises operating in the United States has a threefold contribution to the existing literature. First, it summarizes the salient features of the ‘Double Circulation"strategy. Part of it means Chinese enterprises “Going-out” by buying into firms and businesses abroad and by encouraging foreign investment (“Bringing-in”). Second, attention is drawn to importance of understanding the nature and scope of the cultural conflicts that can arise in the trans-cultural organizations that now have to operate in a new and different work culture and work place culture. Third, a typology of cultural dimensions to management are discussed to give the reader a better appreciation of the complexity faced by both Chinese multinational enterprises and the workers who are the subject of a ‘take-over’. By analyzing the cultural differences between China and the United States and the cultural conflicts caused by the trans-cultural organizations, this paper proposes a solution to the cross-cultural communication and management of Chinese multinational companies investing in the United States.

Seeking Moral Legitimacy through Corporate Social Responsibility: Evidence from Chinese Manufacturing Multinationals

Recently, concerns have been raised as to how Chinese multinational companies (MNCs) can achieve organizational legitimacy and sustainable development in host countries, especially given China’s weak institutional environment. One strategic approach to establish and maintain legitimacy is by promoting corporate social responsibility (CSR). This study examined the relationship between Chinese manufacturing MNCs’ engagement in terms of CSR and gaining moral legitimacy in host countries, and whether the institutional distance between countries is an important moderating factor in this relationship. Using a hierarchical regression analysis and a bootstrapping method on data obtained from 303 questionnaires completed by a sample of Chinese manufacturing MNCs, this paper finds that CSR engagement at both aggregate and disaggregate levels (specifically, customer- and community-related CSR engagement) is likely to be an effective strategy for Chinese manufacturing MNCs’ subsidiaries to gain moral legitimacy in host countries. Furthermore, Chinese MNCs’ subsidiaries are more likely to gain moral legitimacy by means of engagement in customer- and government-related CSR when the institutional distance from China is greater. Overall, this paper contributes to our understanding of the gaining of moral legitimacy by Chinese manufacturing MNCs in host countries. The findings can support Chinese manufacturing MNCs in shaping the CSR strategy of their international businesses.

Determinants of outward foreign direct investment entry mode choice: evidence from Chinese-listed companies

PurposeThe purpose of this paper is to investigate the impact of the nature of firm heterogeneity and factors of the host country on the choice of entry modes in greenfield investments and cross-border mergers and acquisitions.Design/methodology/approachAn empirical analysis was conducted of 450 outward foreign direct investment (OFDI) cases of Chinese-listed companies from 2001 to 2015. A regression analysis was conducted to determine the influence of the heterogeneous nature of enterprises and host country factors on the choice of entry mode.FindingsFirst, the nature of a firm’s heterogeneity differs in terms of their mobile or immobile capabilities, which may affect entry strategies. Second, although Chinese multinational companies do not have a strong ownership advantage when compared with multinational companies in developed countries, they have certain marketing capabilities, such as innovations, aimed at customer needs that make it possible to implement their internationalization strategy. Third, factors such as cultural distance and investment risk of the host country significantly influence the choice of OFDI entry modes.Originality/valueThe authors discuss the mobility of a firm’s resource heterogeneity in determining Chinese firms’ entry mode choices and emphasize that Chinese marketing-intensive firms seek complementary resources from the firms of the host countries to achieve competitive advantages. The authors further divide heterogeneous enterprise resources into research and development resources and marketing resources according to the degree of international mobility and examine what kind of firm heterogeneity could help in the selection of different entry modes.

The impact of Chinese investments on western multinational enterprises’ work and employment practices: A consideration of institutional, political and dominance effects

One of the most significant developments in international business in recent years is the dramatic expansion of Chinese – often state-led or state-supported – investment in Africa. While we know something of Chinese multinational enterprises’ strategies, we know comparatively little about their work and employment practices and even less about their influence on western multinational companies (MNEs). We examine these important issues by looking at the practices of a major Chinese MNE alongside those of a French MNE and a US MNE in Cameroon’s oil industry. We find that while the French and American MNEs were successful in importing their preferred practices and in evading host-country regulations for many years, this was challenged upon the arrival of the Chinese MNE. We query why and by what means did the entrance of a major MNE lead to significant changes in the behaviours of long-resident MNEs. The translation of the identified effects is explained by drawing on different levels of analysis that include an appreciation of the location of the MNE and the state within the international political economy of capitalism, attendant shifts in the frontiers of political influence, isomorphic institutional influences, actors’ postures within and beyond the MNE, and their relational interplay.

“Going Out” and Going In-House: Chinese Multinationals’ Internal Legal Capacity in the United States

The “in-house counsel movement” of the past few decades, with its far-reaching implications for the legal profession, the legal service market, and corporate governance, has attracted a great deal of academic attention. Few scholars, however, have examined the global expansion of emerging market companies and their in-house legal capacity. To narrow the gap, this article investigates the in-house legal capacity of Chinese firms in the United States. In doing so, it focuses on two important yet underexplored questions: (1) whether and how institutions in China influence the capacity building; and (2) whether the Chinese investors’ ownership structure makes a difference in that regard. By analyzing a unique set of survey data and 122 interviews with lawyers, in-house counsel, and business executives, this article uncovers evidence of both multi-institutional influence and state-ownership effects. The findings contribute to theoretical and policy debates about the legal profession, the legal service market, and the ramifications of expanding Chinese multinational companies.

Does corporate internationalization affect corporate social responsibility? Evidence from China

Based on manually collected data, we investigate the effects of internationalization on corporate social responsibility (CSR) in Chinese firms. We find that the internationalization is positively related to CSR scores. The results are robust when we address the endogeneity, and use alternative measurements of the dependent and independent variables. Furthermore, we find internationalization significantly improves the CSR performance when the quality of the host country's institutional environment is better and the firms are state-owned enterprises, business-to-consumer firms, and operate in socially sensitive industries. This indicates that legitimacy is the main motive for Chinese multinational companies to engage in more CSR.

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.