Summary: | The last two decades have witnessed a noticeable rise in Chinese outward foreign direct investment (FDI), which has attracted the interest of scholars from multiple business perspectives. This research focuses on two research areas of Chinese outward FOI, and its objectives are to empirically identify the determinants of the establishment mode of FDI entries and the subsidiary strategy in tern1.'> of global integration and local responsiveness. To fulfil these objectives, J developed conceptual frameworks for I) entry choice between greenfield and acquisition, 2) subsidiary's global integration, and 3) subsidiary's responsiveness, and empirically tested these frameworks with a quantitative research method. This is done using primary data collected from companies' annual reports and relevant documents, a questionnaire survey, and multiple secondary data published by international organisations. In terms of empirical findings, this research suggests that the mainstream FDI theory, the FSA/CSA framework in particular, is capable of explaining FDJ from emerging markets and MNEs' internationalisation activities. Firstly, this research finds that Chinese MNEs do possess a certain degree of FSAs that can be internalised through a greenfield entry, while host country local resources exert significant influence on Chinese films' establishment mode decision. In addition, the importance of home country institution as a driver for firm strategic decision is confirmed in the case of Chinese outward FOI. Secondly, the extended FSA/CSA framework sheds light on the subsidiary strategy in economic integration and local responsiveness. This study finds that the subsidiary's global integration is a function of non-location-bound (NLB) FSAs of Chinese firms, while location-bound (LB) FSAs encourage a subsidiary's local responsiveness. In addition, host country CSAs in trade openness is positivel'y related to the integration, and environment complexity leads to responsive strategy
|