Chinese Multinationals

by Larton, Jean-paul; Chuanzhi, Liu

• ISBN13: 9789812835000
• ISBN10: 9812835008
• Format: Hardcover
• Copyright: 2008-10-22
• Publisher: World Scientific Pub Co Inc

Summary

Tsinghua School of Economics and Management was established 1984 by Professor Zhu Rongi who later became the fifth premier of the people's Republic of China. Committed to excellence in both research and teaching, Tsinghua SEM is one of the first economics and management schools in China, and the only school in mainland China with AACSB and EQUIS accreditations.

Author Biography

"This book goes to press at an opportune time and therefore bears great significance... In the process of "going global", Chinese companies are bound to be confronted with various kinds of problems and difficulties that they have never experienced in China... Lenovo's experience can therefore provide management academics both at home and abroad with a vivid case of overseas acquisition." Liu Chuanzhi, President and CEO of Legend Holdings Ltd

Table of Contents

Forword	p. vii
Preface	p. ix
Acknowledgment	p. xvii
About the Authors	p. xxi
About the Editor	p. xxv
Introduction and Organization of the Book	p. xxvii
Corporate Strategies of Chinese Multinationals	p. 1
Strategic Management in Chinese Enterprises	p. 1
Strategy and the Chinese Economy	p. 2
Corporate Strategy in Chinese Enterprises	p. 2
Integration Strategies in Chinese Enterprises	p. 4
The Logic of Integration	p. 4
Cases of Integration: Shanghai Baosteel and Tsingtao Beer	p. 5
Lessons from Integration	p. 10
Diversification Strategies	p. 12
The Logic of Diversification	p. 12
Cases of Successful Diversification: Haier and Hisense	p. 13
Cases of Unsuccessful Diversification: Apollo and Chundu	p. 16
Lessons from Diversification	p. 17
Globalization Strategies	p. 19
The Logic of Globalization	p. 19
Cases of Globalization Strategies: Wahaha and Wanxiang	p. 21
Lessons from Globalization Strategies	p. 23
References	p. 29
China's Go Global Policy	p. 31
China After WTO Entry	p. 31
National Goals and Company Objectives	p. 31
The Chinese Economy and International Investments	p. 33
Overseas Investment Policy and Administration	p. 38
Developments Stages of China's Overseas Investment Policy	p. 38
The Chinese System of Administrative Examination and Approval	p. 41
The Need for Reforms	p. 43
Promoting China's Outward Investment	p. 44
References	p. 48
China's Outward Foreign Direct Investment	p. 49
China's International Presence and Investment	p. 49
China's Foreign Trade	p. 49
International Contracting Projects and Labor Export Services	p. 52
China's Outward Foreign Direct Investment (FDI)	p. 56
Cross-Border M&A	p. 61
Overseas Listing of Chinese Enterprises	p. 62
Chinese Companies' International Challenges	p. 66
Large Corporations	p. 66
Private Companies and SMEs	p. 68
Challenges Ahead	p. 70
Chinese Emerging Multinationals	p. 71
Policy Issues	p. 73
References	p. 75
The Internationalization Process of Chinese Multinationals	p. 77
Initial Investments and Goals of Chinese Companies	p. 78
Three Internationalization Paths	p. 81
International Vision and Corporate Goals	p. 82
The Internationalization Pattern of Chinese Companies	p. 87
Lessons from the Experience of Foreign Multinationals	p. 87
Chinese Multinationals in the Age of Globalization	p. 88
The Experience of Overseas Chinese Corporations	p. 90
Building "Prior Competitive Advantage" versus "Internationalization First"	p. 91
The Acceleration of Chinese Companies' Internationalization Process	p. 92
Lessons from the China-Japan Comparison	p. 94
References	p. 97
International Marketing Strategies of Chinese Multinationals: The Experience of Bird, Haier, and TCL	p. 99
Motivations for International Marketing	p. 100
Competition in the Domestic Market and the Need for Growth	p. 100
Opportunities Offered by the Global Market	p. 101
Economies of Scale and Relative Cost Advantages	p. 101
Building World-Famous Brands	p. 102
Foreign Market Entry Strategies	p. 104
Bird's Foreign Market Entry Strategies	p. 104
Haier's Foreign Market Entry Strategies	p. 106
TCL's Foreign Market Entry Strategies	p. 108
Characteristics of Foreign Market Entry Strategies	p. 110
International Marketing Strategies	p. 111
BIRD in India and in Europe	p. 111
Haier's Strategy in Developed Countries	p. 114
TCL in Vietnam, India and the Global Market	p. 117
Characteristics of International Marketing Strategies	p. 123
Conclusion	p. 125
References	p. 126
Technology-Based Competition and Chinese Multinationals	p. 127
The Chinese Science and Technology System	p. 127
The New China's Innovation System	p. 127
China's High-Tech Clusters	p. 131
China's Science-Driven Companies: Tsinghua Holdings	p. 133
Business Strategies and Technological Capabilities	p. 137
Technological Innovation Capabilities: Qingdao Hisense Electronics	p. 137
China's Industrial Standards: China 3G	p. 141
China's Telecom Industry: Foreign Competitors and National Champions	p. 142
The China-India Information Technology Link	p. 145
China's Telecom Vendors, ZTE, and Huawei's Go Global Strategy	p. 146
Conclusion	p. 148
References	p. 149
Innovation & Knowledge Transfer in Chinese Multinationals	p. 151
The Knowledge Transfer Imperative	p. 152
Chinese Companies' Knowledge Transfer System	p. 155
The Knowledge Transfer Process	p. 155
The Focus on Developed Economies	p. 157
Key Processes for Knowledge Transfer	p. 158
Managing Risks	p. 160
Major Risks Faced by Chinese Companies	p. 161
Facilitators of Knowledge Transfer	p. 164
Conclusion	p. 165
References	p. 166
Corporate Culture and Organization of Chinese Multinationals	p. 167
Organizational Capabilities, Property Rights, and Corporate Culture	p. 168
Tsingtao Beer: International Capabilities and Strategic Alliance	p. 169
Wanxiang's "Human-Centered" Corporate Culture	p. 172
The "Basic Law" of Huawei Technologies	p. 176
Globalization and Organizational Structures	p. 180
Stages of Organizational Development of Chinese Emerging Multinationals	p. 180
Wanxiang's Acquisition and Integration Policy	p. 181
Huawei Technologies' Transnational Capabilities	p. 187
References	p. 190
Chinese Multinationals and Global Value Chains Lenovo	p. 193
Introduction	p. 193
Chinese Firms' Strategic Advantages and Limitations	p. 194
The Impact of Western Firms Refocusing Efforts	p. 197
Reconfiguration of Global Value Chains	p. 197
Complementarities of Value Chains	p. 198
The Acquisition of the IBM PC Division by Lenovo	p. 199
Implications of Foreign Acquisitions for the Chinese Firms	p. 202
Conclusion	p. 205
References	p. 206
Alliances, Joint-Ventures and Chinese Multinationals	p. 207
Joint-Ventures for Technology Acquisition	p. 208
Joint-Ventures for Foreign Market Entry	p. 213
Joint-Ventures and Natural Resources	p. 220
Internal Rivalry within Alliances	p. 222
References	p. 226
Conclusion: China's Unique Advantage	p. 229
Annex 1	p. 231
Annex 2	p. 237
Abbreviations	p. 251
Tables, Figures and Boxes	p. 255
Bibliography	p. 257
Index	p. 259
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