Chinese Multinational Companies Research Articles

Intercultural Communication Practices in Chinese Firms in Lusaka, Zambia: Perspectives of Zambian Employees

This article highlights the Intercultural Communication Practices in Chinese Multinational Companies (MNCs) in Zambia with a particular focus on Zambian employees’ perspectives. It explores communication practices in Chinese firms in Lusaka, understanding Zambian workers’ perceptions of communication with Chinese counterparts, and identifying barriers to effective communication. Employing a Phenomenological approach, two (02) Chinese MNCs in Zambia were studied: China Jiangsu International and Avic International (Zambia) Limited. Ten employees were interviewed. The findings indicate the use of interpreters, oral communication, and gestures for daily activities exchange. While some found these practices effective, others faced challenges due to intercultural differences. Barriers include lack of respect for elders, disregard for pleasantries, and impatience among Chinese employees. The study concludes that Chinese MNCs lack adequate attention to intercultural communication strategies, thus recommending the implementation of deliberate improvement measures.

Dynamic Mechanisms of R&D Innovation in Chinese Multinational Corporations: The Impact of Government Support, Market Competition and Entrepreneurial Spirit

This study focuses on the R&D innovation drive mechanism of Chinese multinational companies. Using a grounded theory, five driving factors were identified: government support, entrepreneurial spirit, market competition, company profits, and the innovation environment of the host country. Dynamic Qualitative Comparative Analysis was then employed to assess the validity of these driving factors and determine their pathways of influence, leading to the establishment of a driving mechanism. Finally, structural equation modeling was used to explore the magnitude of the effects of these driving factors. Based on data analysis from Chinese A-share listed multinational companies from 2007 to 2022, it was found that entrepreneurial spirit serves as the core driving force, while government support and market competition act as mediating variables that significantly promote R&D innovation among Chinese multinational companies. However, company profits were found to have a negative impact. Additionally, the innovation environment of the host country plays a moderating role, enhancing the positive effects of government support and market competition on innovation. These findings emphasize the importance of the synergy between the internal and external resources for Chinese multinational companies, providing important insights for integrating global resources to enhance international competitiveness and innovation capabilities.

The Protection of Labor Rights of Chinese Multinational Corporations under the Belt and Road Initiative

With the deepening of the "Belt and Road" Initiative, the number of Chinese overseas workers is increasing, and the protection of labor rights and interests is becoming more and more prominent. This article analyzes the problems in the protection of labor rights and interests of Chinese multinational corporations and their causes, and finds that these problems are mainly concentrated in the aspects of identity legitimacy, law application, discrimination in employment access and neglect of the right to human dignity. The incompleteness of the host country's legal and social security system, the inadequacy of diplomatic and consular protection in the home country, the lack of social responsibility of transnational corporations, and the weak awareness of workers' rights are all important reasons for the violation of workers' rights and interests. In order to solve these problems, the paper proposes optimization paths at the national level, the level of transnational companies and the level of workers themselves, including building regional agreements, strengthening legal aid, implementing legal training and raising awareness of self-protection. Through multi-faceted efforts, we can better protect the legitimate rights and interests of overseas workers of Chinese multinational companies, promote the smooth implementation of the Belt and Road Initiative, and achieve the goal of win-win cooperation.

Home country regulates outbound investment to fulfill human rights obligations-taking China as an example

ABSTRACT Restricted by economic and social development conditions and the construction level of the domestic regulatory system, the traditional host country-centered approach makes it challenging to ensure that multinational enterprises fulfil their human rights obligations. The jury is still out on whether international law can directly impose obligations and responsibilities on enterprises. Therefore, the home countries could regulate human rights violations in enterprises' outbound investments. However, in the domestic regulatory system of the home country, there is often a problem of no regulation or ineffective regulation of enterprises' outbound investments. Taking China as an example, this article explores how to enhance the home country's regulation on multinational corporations' fulfilment of human rights obligations,by comparing and drawing on the experience of other jurisdictions in dealing with similar issues and combining with the regulatory practice of China's outbound-invested enterprises, which will better promote China's full implementation of the commitment to the UNGP as stated in the National Human Rights Action Plan, and help Chinese multinational companies go global better, highlighting the value concept of community with a shared future for mankind that China has always advocated as a responsible major country.

Analysis of KFC's localized marketing strategy in China

In today's information society, international competition is intensifying, and the pace of internationalization of enterprises is also accelerating. Many foreign-funded enterprises are no longer limited to domestic production and operation, but are gradually opening up to overseas and gradually occupying overseas markets through excellent strategic marketing. With the rapid development of China's economy, multinational companies from all over the world have also begun to invest in China, and among these multinational companies, KFC has performed extremely well. It has been 36 years since KFC entered the Chinese catering market, and after more than 30 years of development, the two giants of KFC and McDonald's have basically achieved a monopoly position in China's "foreign fast food" market. The main reason for KFC's success is its localized marketing strategy. This article will focus on the development history of KFC, China's localization strategy, and comparison with McDonald's, hoping to provide some references for the development of Chinese multinational companies in overseas markets.

Chinese heritage speakers as language brokers in internship abroad

AbstractFocusing 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.

CROSS CULTURE COMMUNICATION DI PERUSAHAAN TONGKOK

Intercultural communication (cross cultural communication) is increasingly important in multinational companies in China because of the increasing number of foreign employees working there. This research aims to analyze the intercultural communication challenges that arise in Chinese companies and how to overcome them. The research was conducted through in-depth interviews with 15 foreign employees and 15 Chinese employees who worked in 5 Chinese multinational companies from various industries. The research results show that differences in communication styles, social norms and cultural values often lead to misunderstandings and conflicts between Chinese and foreign employees.Foreign employees often feel Chinese employees are too direct, not open enough and self-centered, while Chinese employees feel foreign employees are too blunt and disrespectful to superiors. Misunderstandings also often occur regarding decision making and problem solving. It is recommended that companies organize cross-cultural training, encourage open communication between departments and a culture of mutual respect to overcome these challenges. Intercultural communication skills need to be trained to all employees so that cooperation and productivity increase. Keyword: Cross Culture, Communication, Chinese Company

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.