Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory

Shaowei He, Grahame R Fallon

Research output: Contribution to conference typesPaperResearch

Abstract

We argue that the extant literature tends to view that EMNEs do not have FSAs and in particular, innovation-based ownership advantages. This, however, is not a fact but a myth that deserves detailed examination. Drawing on a case study of four Chinese multinationals, we argue that some Chinese multinationals have brilliant innovation capabilities particularly in areas such as services-based innovation, architectural innovation and grafting innovation. This helps to explain their rapid rise and internationalisation. We therefore argue that Dunning’s OLI paradigm is still relevant in the context of EMNEs. However we also accept that the OLI paradigm needs to be taken with a complementary view that EMNEs also internationalise to augment their assets/capabilities. We call for further studies on EMNEs’ FSAs with a broader view of innovation
Original languageEnglish
Publication statusPublished - 22 Mar 2013
Event40th Academy of International Business, UK & Ireland Chapter (AIB-UKI) Conference (2013) - Aston Business School, Birmingham
Duration: 22 Mar 2013 → …

Conference

Conference40th Academy of International Business, UK & Ireland Chapter (AIB-UKI) Conference (2013)
Period22/03/13 → …

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Innovation
Multinational enterprises
Firm-specific advantages
International business theory
Chinese multinationals
Paradigm
Internationalization
Innovation capability
Assets
Ownership advantages

Cite this

He, S., & Fallon, G. R. (2013). Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory. Paper presented at 40th Academy of International Business, UK & Ireland Chapter (AIB-UKI) Conference (2013), .
He, Shaowei ; Fallon, Grahame R. / Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory. Paper presented at 40th Academy of International Business, UK & Ireland Chapter (AIB-UKI) Conference (2013), .
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He, S & Fallon, GR 2013, 'Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory' Paper presented at 40th Academy of International Business, UK & Ireland Chapter (AIB-UKI) Conference (2013), 22/03/13, .

Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory. / He, Shaowei; Fallon, Grahame R.

2013. Paper presented at 40th Academy of International Business, UK & Ireland Chapter (AIB-UKI) Conference (2013), .

Research output: Contribution to conference typesPaperResearch

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T1 - Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory

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AU - Fallon, Grahame R

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N2 - We argue that the extant literature tends to view that EMNEs do not have FSAs and in particular, innovation-based ownership advantages. This, however, is not a fact but a myth that deserves detailed examination. Drawing on a case study of four Chinese multinationals, we argue that some Chinese multinationals have brilliant innovation capabilities particularly in areas such as services-based innovation, architectural innovation and grafting innovation. This helps to explain their rapid rise and internationalisation. We therefore argue that Dunning’s OLI paradigm is still relevant in the context of EMNEs. However we also accept that the OLI paradigm needs to be taken with a complementary view that EMNEs also internationalise to augment their assets/capabilities. We call for further studies on EMNEs’ FSAs with a broader view of innovation

AB - We argue that the extant literature tends to view that EMNEs do not have FSAs and in particular, innovation-based ownership advantages. This, however, is not a fact but a myth that deserves detailed examination. Drawing on a case study of four Chinese multinationals, we argue that some Chinese multinationals have brilliant innovation capabilities particularly in areas such as services-based innovation, architectural innovation and grafting innovation. This helps to explain their rapid rise and internationalisation. We therefore argue that Dunning’s OLI paradigm is still relevant in the context of EMNEs. However we also accept that the OLI paradigm needs to be taken with a complementary view that EMNEs also internationalise to augment their assets/capabilities. We call for further studies on EMNEs’ FSAs with a broader view of innovation

M3 - Paper

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He S, Fallon GR. Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory. 2013. Paper presented at 40th Academy of International Business, UK & Ireland Chapter (AIB-UKI) Conference (2013), .