What explains the performance of Chinese exporting firms?

Nan Zheng, Yi Qu

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Drawing on the entry mode (EM) literature and the strategic tripod framework, we examine whether firm performance is influenced by its outward foreign direct investment (OFDI) mode, controlling other firm-, industry- and institution-specific factors. It is found that employing OFDI does not improve an exporting firm’s performance. This is not surprising as anecdotal evidence shows that many Chinese firms with OFDI have been making loss in the host country. This may indicate exporting firms employ OFDI to seek complementary and strategic resources/assets, not to improve immediate firm performance. Furthermore, firm performance is influenced by strategic assets, including technology-based capabilities and brands, at the firm level, industry entry barriers at the industry level and the home and host country institutional support at the country level.

Original languageEnglish
Pages (from-to)51-70
Number of pages20
JournalJournal of Chinese Economic and Business Studies
Volume13
Issue number1
DOIs
Publication statusPublished - 2 Jan 2015

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Firm performance
Exporting
Outward foreign direct investment
Industry
Host country
Strategic resources
Institutional support
Entry barriers
Chinese firms
Assets
Complementary resources
Specific factors
Home country
Strategic assets
Strategic framework
Entry mode

Cite this

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What explains the performance of Chinese exporting firms? / Zheng, Nan; Qu, Yi.

In: Journal of Chinese Economic and Business Studies, Vol. 13, No. 1, 02.01.2015, p. 51-70.

Research output: Contribution to journalArticle

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