Skip to main content
Log in

Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support

  • Research Article
  • Published:
Management International Review Aims and scope Submit manuscript

Abstract

This study uses data at the firm level to examine the relationship between the market entry strategies of 556 Chinese MNEs and their performance in Germany. Based on the revisited Uppsala internationalization process model, we develop six hypotheses on the impact of different market entry modes on performance, and on the moderating effect of home government support on this relationship. The findings show significant effects of location choice, activity mode and establishment mode, as well as duration of market presence on performance. Furthermore, strong interaction effects of home government support on these relationships reveal that the advantages of different market entry strategies are amplified by home government support. We conclude with theoretical and managerial implications, as well as a reflection of limitations and directions for future research. We conclude with theoretical and managerial implications as well as a reflection of limitations and directions of future research. The study contributes to international management research by integrating performance effects and the facilitating role of home government support into the internationalization process model.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Agarwal, S., & Ramaswami, S. N. (1992). Choice of foreign market entry mode: Impact of ownership, location and internationalization factors. Journal of International Business Studies, 23(1), 1–27.

    Article  Google Scholar 

  • Aguinis, H., Gottfredson, R. K., & Joo, H. (2013). Best-practice recommendations for defining, identifying, and handling outliers. Organizational Research Methods, 16(2), 270–310.

    Article  Google Scholar 

  • Alon, I., Child, J., Li, S., & McIntyre, J. R. (2011). Globalisation of Chinese firms: Theoretical universalism or particularism. Management and Organization Review, 7(2), 191–200.

    Article  Google Scholar 

  • Amal, M., Swuah, G., Raboch, H., & Andersson, S. (2013). Differences and similarities of the internationalization processes of multinational companies from developed and emerging countries. European Business Review, 25(5), 411–428.

    Article  Google Scholar 

  • Amin, A., & Thrift, N. (1994). Globalisation, institutions and regional development in Europe. Oxford: Oxford University Press.

    Google Scholar 

  • Anderson, E., & Gatignon, H. (1986). Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies, 17(3), 1–26.

    Article  Google Scholar 

  • Annushkina, O. E., & Colonel, R. T. (2013). Foreign market selection by Russian MNEs—beyond a binary approach? Critical Perspectives on International Business, 9(1/2), 58–87.

    Article  Google Scholar 

  • Asheim, B. T., & Isaksen, A. (1997). Location, Agglomeration and Innovation: Towards Regional Innovation Systems in Norway? European Planning Studies, 5(3), 299–330.

    Article  Google Scholar 

  • Banerjee, S., Prabhu, J., & Chandy, R. (2015). Indirect learning: How emerging-market firms grow in developed markets. Journal of Marketing, 79(1), 10–28.

    Article  Google Scholar 

  • Bangara, A., Freeman, S., & Schroder, W. (2012). Legitimacy and accelerated internationalisation: An Indian perspective. Journal of World Business, 47(4), 623–634.

    Article  Google Scholar 

  • Barkema, H. G., Bell, J., & Pennings, J. M. (1996). Foreign entry, cultural barriers, and learning. Strategic Management Journal, 17(2), 151–166.

    Article  Google Scholar 

  • Bascle, G. (2008). Controlling for endogeneity with instrumental variables in strategic management research. Strategic Organization, 6(3), 285–327.

    Article  Google Scholar 

  • Belderbos, R. (2003). Entry mode, organizational learning, and R&D in foreign affiliates: Evidence from Japanese firms. Strategic Management Journal, 24(3), 235–259.

    Article  Google Scholar 

  • Benito, G., & Welch, L. (1994). Foreign market servicing: Beyond choice of entry mode. Journal of International Marketing, 2(2), 7–27.

    Google Scholar 

  • Berning, S. C., & Holtbrügge, D. (2014). The national government’s role in Chinese outward foreign direct investment. In C. C. Julian, Z. U. Ahmed, & J. Xu (Eds.), Research handbook on the globalization of Chinese firms. Cheltenham: Edward Elgar.

    Google Scholar 

  • Birkinshaw, J. (2000). Entrepreneurship in the global firm. London: Sage.

    Google Scholar 

  • Blomstermo, A., Eriksson, K., Lindstrand, A., & Sharma, D. D. (2004). The usefulness of network knowledge in the international firm. Journal of International Management, 10(3), 355–373.

    Article  Google Scholar 

  • Blomström, M., & Sjöholm, F. (1999). Technology transfer and spillovers: Does local participation with multinationals matter? European Economic Review, 43(4–6), 915–923.

    Article  Google Scholar 

  • Boeh, K. K., & Beamish, P. W. (2012). Travel time and the liability of distance in foreign direct investment: Location choice and entry mode. Journal of International Business Studies, 43(5), 525–535.

    Article  Google Scholar 

  • Boisot, M., & Meyer, M. W. (2008). Which way through the open door? Reflections on the internationalization of Chinese firms. Management and Organization Review, 4(3), 349–365.

    Article  Google Scholar 

  • Bonaglia, F., Goldstein, A., & Mathews, J. A. (2007). Accelerated internationalization by emerging markets’ multinationals: The case of the white goods sector. Journal of World Business, 42(4), 369–383.

    Article  Google Scholar 

  • Brouthers, K. D. (2002). Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of International Business Studies, 33(2), 203–221.

    Article  Google Scholar 

  • Bruche, G., & Wallner, B. (2013). Dragons and Tigers Hunting in Germany: Chinese and Indian acquisitions of German firms 2002–2012. Berlin: BGM Associates.

    Google Scholar 

  • Buckley, P. J., & Casson, M. C. (1998). Analyzing foreign market entry strategies: Extending the internalization approach. Journal of International Business Studies, 29(3), 539–562.

    Article  Google Scholar 

  • Buckley, P., Clegg, J., Cross, A., Liu, X., Voss, H., & Zheng, P. (2007). The determinants of Chinese outward foreign direct investment. Journal of International Business Studies, 38(4), 499–518.

    Article  Google Scholar 

  • Buckley, P. J., Clegg, J., & Wang, C. (2002). The impact of inward FDI on the performance of Chinese manufacturing firms. Journal of International Business Studies, 33(4), 637–655.

    Article  Google Scholar 

  • Buckley, P. J., Elia, S., & Kafouros, M. (2014). Acquisitions by emerging market multinationals: Implications for firm performance. Journal of World Business, 49(4), 611–632.

    Article  Google Scholar 

  • Capron, L., Dussauge, P., & Mitchell, W. (1998). Resource deployment following horizontal acquisitions in Europe and North America 1988–1992. Strategic Management Journal, 19(7), 631–661.

    Article  Google Scholar 

  • Chang, S.-J., Chung, J., & Moon, J. J. (2013). When do wholly owned subsidiaries perform better than joint ventures? Strategic Management Journal, 34(3), 317–337.

    Article  Google Scholar 

  • Chari, M. D. R., & Chang, K. (2009). Determinants of the share of equity sought in cross-border acquisitions. Journal of International Business Studies, 40(8), 1277–1297.

    Article  Google Scholar 

  • Chen, H., & Chen, T.-J. (1998). Network linkages and location choice in foreign direct investment. Journal of International Business Studies, 29(3), 445–468.

    Article  Google Scholar 

  • Chen, Y.-R., Yang, C., Hsu, S.-M., & Wang, Y. D. (2009). Entry mode choice in China’s regional distribution markets: Institution vs. transaction costs perspectives. Industrial Marketing Management, 38(7), 702–713.

    Article  Google Scholar 

  • Child, J., & Rodrigues, S. B. (2005). The internationalization of Chinese firms: A case for theoretical extension? Management and Organization Review, 1(3), 381–410.

    Article  Google Scholar 

  • Chung, H. F. L., & Enderwick, P. (2001). An investigation of market entry strategy selection: export vs. foreign direct investment modes: A home-host country scenario. Asia Pacific Journal of Management, 18(4), 443–460.

    Article  Google Scholar 

  • Clegg, J., Lin, H. M., Voss, H., Yen, I.-F., & Shih, Y. T. (2016). The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors. International Business Review, 25(4), 971–985.

    Article  Google Scholar 

  • Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation. Analysis for the behavioral sciences. Mahwah, N.J.: L. Erlbaum Associates.

    Google Scholar 

  • Coviello, N. E., & Munro, H. (1997). Network relationships and the internationalization process of small software firms. International Business Review, 6(4), 361–386.

    Article  Google Scholar 

  • Crick, D., & Jones, M. V. (2000). Small high technology firms and international high technology markets. Journal of International Marketing, 8(2), 63–85.

    Article  Google Scholar 

  • Cui, L., & Jiang, F. (2009). FDI entry mode choice of Chinese firms: A strategic behaviour perspective. Journal of World Business, 44(4), 434–444.

    Article  Google Scholar 

  • Cui, L., & Jiang, F. (2012). State ownership effect on firms’ FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms. Journal of International Business Studies, 43(3), 264–284.

    Article  Google Scholar 

  • Deng, P. (2007). Investing for strategic resources and its rationale: The case of outward FDI from Chinese companies. Business Horizons, 50(1), 71–81.

    Article  Google Scholar 

  • Dikova, D., & van Witteloostuijn, A. (2007). Foreign direct investment mode choice: Entry and establishment modes in transition economies. Journal of International Business Studies, 38(6), 1013–1033.

    Article  Google Scholar 

  • Dunning, J. H. (1980). Towards an eclectic theory of international production: some empirical tests. Journal of International Business Studies, 11(1), 9–31.

    Article  Google Scholar 

  • Dunning, J. H. (1998). Location and the multinational enterprise: A neglected factor. Journal of International Business Studies, 29(1), 45–66.

    Article  Google Scholar 

  • Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 550–579.

    Google Scholar 

  • Elango, B., & Pattnaik, C. (2011). Learning Before Making the Big Leap: Acquisition Strategies of Emerging Market Firms. Management International Review, 51, 461-481.

  • Eriksson, K., Johanson, J., Majkgard, A., & Sharma, D. D. (2000). Effect of variation on knowledge accumulation in the internationalization process. International Studies of Management and Organization, 30(1), 26–44.

    Article  Google Scholar 

  • Ford, D. (1990). Understanding business markets: interaction, relationships and networks. London: Academic Press.

    Google Scholar 

  • Gammelgaard, J., McDonald, F., Stephan, A., Tüselmann, H., & Dörrenbächer, C. (2012). The impact of increases in subsidiary autonomy and network relationships on performance. International Business Review, 21(6), 1158–1172.

    Article  Google Scholar 

  • Gilroy, B. M. (1993). Networking in multinational enterprises: The importance of strategic alliances. Columbia, SC: University of South Carolina Press.

    Google Scholar 

  • Globerman, S., & Shapiro, D. (2009). Economic and strategic considerations surrounding Chinese FDI in the United States. Asia Pacific Journal of Management, 26(1), 163–183.

    Article  Google Scholar 

  • Gomes-Casseres, B. (1997). Alliance strategies of small firms. Small Business Economics, 9(1), 33–44.

    Article  Google Scholar 

  • Gubbi, S. R., Aulakh, P. S., Ray, S., Sarkar, M. B., & Chittoor, R. (2010). Do international acquisitions by emerging-economy firms create shareholder value? The case of Indian firms. Journal of International Business Studies, 41(3), 397–418.

    Article  Google Scholar 

  • Guthrie, J. P. (2001). High-involvement work practices, turnover and productivity: Evidence from New Zealand. Academy of Management Journal, 44(1), 180–190.

    Article  Google Scholar 

  • Guthrie, D. (2005). Organizational Learning and Productivity: State Structure and Foreign Investment in the Rise of the Chinese Corporation. Management and Organization Review, 1(2), 165–195.

    Article  Google Scholar 

  • Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysis. 5th. edn. Englewood Cliffs, NJ: Prentice Hall.

  • Hakansson, H., & Snethota, I. (1995). Developing relationships in business networks. London: Routledge.

    Google Scholar 

  • Hamilton, B. H., & Nickerson, J. A. (2003). Correcting for endogeneity in strategic management research. Strategic Organization, 1(1), 51–78.

    Article  Google Scholar 

  • Harrison, B., Kelley, M., & Gant, J. (1996). Innovative firm behavior and local milieu: exploring the intersection of agglomeration, firm effects, and technological change. Economic Geography, 72(3), 233–258.

    Article  Google Scholar 

  • Harzing, A. (2002). Acquisitions versus greenfield investments: International strategy and management of entry modes. Strategic Management Journal, 23(3), 211–228.

    Article  Google Scholar 

  • Hennart, J.-F. (1991). The transaction costs theory of joint ventures: An empirical study of Japanese subsidiaries in the United States. Management Science, 37(4), 483–487.

    Article  Google Scholar 

  • Hilmersson, M., & Jansson, H. (2011). International network extension processes to institutionally different markets: entry nodes and processes of exporting SMEs. International Journal of Business Environment, 4(3), 268–286.

    Article  Google Scholar 

  • Hilmersson, M., & Jansson, H. (2012). Reducing uncertainty in the emerging market entry process: On the relationship among international experiential knowledge, institutional distance, and uncertainty. Journal of International Marketing, 20(4), 96–110.

    Article  Google Scholar 

  • Hitt, M. A., Dacin, M. T., Levitas, E. T., Arregle, J.-L., & Borza, A. (2000). Partner selection in emerging and developed market contexts: Resource-based and organizational learning perspectives. Academy of Management Journal, 43(3), 449–467.

    Article  Google Scholar 

  • Hohenthal, J. (2006). Managing interdependent business relationships in SME internationalization. In A. Hadjikhani, J. W. Lee, & J. Johanson (Eds.), Business networks and international marketing. Doo yang: Seoul.

    Google Scholar 

  • Holtbrügge, D., & Berning, S. C. (2012). Chinese outward foreign direct investment—a challenge for traditional internationalization theories? Management Reviews Quarterly, 62(3/4), 169–224.

    Google Scholar 

  • Holtbrügge, D., & Kreppel, H. (2012). Determinants of outward foreign direct investment from BRIC countries: An explorative study. International Journal of Emerging Markets, 7(1), 4–30.

    Article  Google Scholar 

  • Hult, G. T. M., Ketchen, D. J., Jr., Griffith, D. A., Chabowski, B. R., Hamman, M. K., Johnson Dykes, B., et al. (2008). An assessment of the measurement of performance in international business research. Journal of International Business Studies, 39(6), 1064–1080.

    Article  Google Scholar 

  • Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672.

    Article  Google Scholar 

  • Hutzschenreuter, T., Voll, J. C., & Verbeke, A. (2011). The impact of added cultural distance and cultural diversity on international expansion patterns: A Penrosean perspective. Journal of Management Studies, 48(2), 305–329.

    Google Scholar 

  • Ivarsson, I., & Alvstam, C. G. (2013). Embedded internationalization: How small- and medium-sized Swedish companies use business-network relations with Western customers to establish own manufacturing in China. Asian Business and Management, 12(5), 565–589.

    Article  Google Scholar 

  • Johanson, J., & Mattson, L. G. (1987). Interorganizational relations in industrial systems: A network approach compared with the transaction cost approach. International Studies of Management and Organization, 17(1), 34–48.

    Article  Google Scholar 

  • Johanson, J., & Vahlne, J.-E. (1977). The internationalization process of the firm. A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23–32.

    Article  Google Scholar 

  • Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411–1431.

    Article  Google Scholar 

  • Johanson, J., & Vahlne, J.-E. (2011). Markets as networks: Implications for strategy-making. Journal of the Academy of Marketing Science, 39(4), 484–491.

    Article  Google Scholar 

  • Johanson, J., & Vahlne, J.-E. (2013). The Uppsala model on evolution of the multinational business enterprise—from internalization to coordination of networks. International Marketing Review, 30(3), 189–210.

    Article  Google Scholar 

  • Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm: Four Swedish cases. Journal of Management Studies, 12(3), 305–322.

    Article  Google Scholar 

  • Kang, Y., & Jiang, F. (2012). FDI location choice of Chinese multinationals in East and Southeast Asia: Traditional economic factors and institutional perspective. Journal of World Business, 47(1), 45–53.

    Article  Google Scholar 

  • Kedia, B., Gaffney, N., & Clampit, J. (2012). EMNEs and knowledge-seeking FDI. Management International Review, 52(2), 155–173.

    Article  Google Scholar 

  • Keeble, D., Lawson, C., Moore, B., & Wilkinson, F. (1999). Collective learning processes, networking and institutional thickness in the Cambridge region. Regional Studies, 33(4), 319–331.

    Article  Google Scholar 

  • Klossek, A., Linke, B. M., & Nippa, M. (2012). Chinese enterprises in Germany: Establishment modes and strategies to mitigate the liability of foreignness. Journal of World Business, 47(1), 35–44.

    Article  Google Scholar 

  • Knight, G. A., & Cavusgil, S. T. (1996). The born global firm: A challenge to traditional internationalization theory. Advances in International Marketing, 8, 11–26.

    Google Scholar 

  • Koch, M. J., & McGrath, R. G. (1996). Improving labor productivity: Human resource management policies do matter. Strategic Management Journal, 17(5), 335–354.

    Article  Google Scholar 

  • Kolstad, I., & Wiig, A. (2012). What determines Chinese outward FDI? Journal of World Business, 47(1), 26–34.

    Article  Google Scholar 

  • Konstadakopulos, D. (2000). Learning behavior and co-operation of small high technology firms in the ASEAN region. ASEAN Economic Bulletin, 17(1), 48–59.

    Article  Google Scholar 

  • Kreppel, H., & Holtbrügge, D. (2013). Perceptions of Chinese and Indian brand personalities in Germany. In T. S. Chan & G. Cui (Eds.), Multinationals and global consumers. Tension, potential and competition (pp. 225–254). New York: Palgrave.

    Chapter  Google Scholar 

  • Kundu, S. K., & Katz, J. (2003). Born-international SMEs: BI-level impacts of resources and intentions. Small Business Economics, 20(1), 25–47.

    Article  Google Scholar 

  • Li, P. P. (2010). Toward a learning-based view of internationalization: The accelerated trajectories of cross-border learning for latecomers. Journal of International Management, 16(1), 43–59.

    Article  Google Scholar 

  • Liu, X., Buck, T., & Shu, C. (2005). Chinese economic development, the next stage: Outward FDI? International Business Review, 14(1), 97–115.

    Article  Google Scholar 

  • Liu, X., & Zou, H. (2008). The impact of greenfield FDI and mergers and acquisitions on innovation in Chinese high-tech industries. Journal of World Business, 43(3), 352–364.

    Article  Google Scholar 

  • Loane, S., & Bell, J. (2006). Rapid internationalization among entrepreneurial firms in Australia, Canada, Ireland and New Zealand. An extension to the network approach. International Marketing Review, 23(5), 467–485.

    Article  Google Scholar 

  • Lu, J., Liu, X., & Wang, H. (2010). Motives for outward FDI of Chinese private firms: Firm resources, industry dynamics, and government policies. Management and Organization Review, 7(2), 223–248.

    Article  Google Scholar 

  • Lu, J., Liu, X., Wright, M., & Filatotchev, I. (2014). International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions. Journal of International Business Studies, 45(4), 428–449.

    Article  Google Scholar 

  • Lundvall, B., & Johnson, B. (1994). The learning economy. Journal of Industry Studies, 1(2), 23–42.

    Article  Google Scholar 

  • Luo, Y. (2001). Toward a cooperative view of MNC–host government relations: Building blocks and performance implications. Journal of International Business Studies, 32(3), 401–419.

    Article  Google Scholar 

  • Luo, Y., & Peng, M. W. (1999). Learning to compete in a transitional economy: Experience, environment and performance. Journal of International Business Studies, 30(2), 269–296.

    Article  Google Scholar 

  • Luo, Y., & Tung, R. L. (2007). International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(5), 481–498.

    Article  Google Scholar 

  • Luo, Y., & Wang, S. L. (2012). Foreign direct investment strategies by developing country multinationals: A diagnostic model for home country effects. Global Strategy Journal, 2(3), 244–261.

    Article  Google Scholar 

  • Luo, Y., Xue, C., & Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of World Business, 45(1), 68–79.

    Article  Google Scholar 

  • Lyles, M., Li, D., & Yan, H. (2014). Chinese outward foreign direct investment performance: The role of learning. Management and Organization Review, 10(3), 411–437.

    Google Scholar 

  • MacKinnon, D., Cumbers, A., & Chapman, K. (2002). Learning, innovation and regional development: A critical appraisal of recent debates. Progress in Human Geography, 26(3), 293–311.

    Article  Google Scholar 

  • Madhok, A. (2006). How much does ownership really matter? Equity and trust relations in joint venture relationships. Journal of International Business Studies, 37(1), 4–11.

    Article  Google Scholar 

  • Makino, S., & Delios, A. (1996). Local knowledge transfer and performance: Implications for alliance formation in Asia. Journal of International Business Studies, 27(5), 905–927.

    Article  Google Scholar 

  • Makino, S., Lau, C.-M., & Yeh, R.-S. (2002). Asset-exploitation versus asset-seeking: Implications for location choice of foreign direct investment from newly industrialized economies. Journal of International Business Studies, 33(3), 403–421.

    Article  Google Scholar 

  • Makino, S., & Neupert, K. E. (2000). National culture, transaction costs, and the choice between joint venture and wholly owned subsidiary. Journal of International Business Studies, 31(4), 705–713.

    Article  Google Scholar 

  • Maskell, P., & Malmberg, A. (1999). Localised learning and industrial competitiveness. Cambridge Journal of Economics, 23(2), 167–185.

    Article  Google Scholar 

  • Mathews, J. A. (2002). Competitive advantages of the latecomer firm: A resource-based account of industrial catch-up strategies. Asia Pacific Journal of Management, 19(4), 467–488.

    Article  Google Scholar 

  • Mathews, J. A. (2006). Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23(1), 5–27.

    Article  Google Scholar 

  • Meyer, K. E. (2014). Process perspectives on the growth of emerging economy multinationals. In: R. Ramamurti & A. Cuervo-Cazurra, (Eds.), Understanding multinationals from Emerging Markets. Cambridge University Press, Cambridge.

  • Meyer, K. E., Mudambi, R., & Narula, R. (2011). Multinational enterprises and local contexts: The opportunities and challenges of multiple embeddedness. Journal of Management Studies, 48(2), 235–252.

    Google Scholar 

  • Meyer, K. E., & Nguyen, H. V. (2005). Foreign investment strategies and sub-national institutions in emerging markets: evidence from Vietnam. Journal of Management Studies, 42(1), 63–93.

    Article  Google Scholar 

  • Meyer, K. E., Wright, M., & Pruthi, S. (2009). Managing knowledge in foreign entry strategies: A resource-based analysis. Strategic Management Journal, 30(5), 557–574.

    Article  Google Scholar 

  • Morck, R., Yeung, B., & Zhao, M. (2008). Perspectives on China’s outward foreign direct investment. Journal of International Business Studies, 39(3), 337–350.

    Article  Google Scholar 

  • Morosini, P., Shane, S., & Singh, H. (1998). National cultural distance and cross-border acquisition performance. Journal of International Business Studies, 29(1), 137–158.

    Article  Google Scholar 

  • Mudambi, R. (2002). Knowledge management in multinational firms. Journal of International Management, 8(1), 1–9.

    Article  Google Scholar 

  • Mudambi, R., & Zahra, S. A. (2007). The survival of international new ventures. Journal of International Business Studies, 38(2), 333–352.

    Article  Google Scholar 

  • Nguyen, Q. (2011). The empirical literature on multinational enterprises, subsidiaries and performance. Multinational Business Review, 19(1), 47–64.

    Article  Google Scholar 

  • Nguyen, T. V., & Hong, J. (2013). Local knowledge acquisition of foreign subsidiaries in Vietnam and China. Multinational Business Review, 21(4), 312–333.

    Article  Google Scholar 

  • Osland, G., & Bjoerkman, I. (1998). MNC-host government interaction: Government pressures on MNCS in China. European Management Journal, 16(1), 91–100.

    Article  Google Scholar 

  • Pan, Y., & Tse, D. K. (2000). The hierarchical model of market entry modes. Journal of International Business Studies, 31(4), 535–554.

    Article  Google Scholar 

  • Peng, M. W., Wang, D., & Jiang, Y. (2008). An institution-based view of international business strategy. A focus on emerging economies. Journal of International Business Studies, 39(5), 920–936.

    Article  Google Scholar 

  • Peng, M.W. (2012). The global strategy of emerging multinationals from China. Global Strategy Journal, 2(2), 97–107.

  • Porter, M. (1990). The competitive advantage of nations. London: Macmillan.

    Book  Google Scholar 

  • Rabbiosi, L., Elia, S., & Bertoni, F. (2012). Acquisitions by EMNCs in developed markets. An organisational learning perspective. Management International Review, 52(2), 193–212.

    Article  Google Scholar 

  • Ramamurti, R. (2009). What we have learned about emerging-market MNEs? In R. Ramamurti & J. V. Singh (Eds.), Emerging multinationals in Emerging Markets. New York: Cambridge University Press.

    Chapter  Google Scholar 

  • Ramamurti, R. (2012). What is really different about emerging market multinationals? Global Strategy Journal, 2(1), 41–47.

    Article  Google Scholar 

  • Rienda, L., Claver, E., & Quer, D. (2013). The internationalisation of Indian multinationals: determinants of expansion through acquisitions. Journal of the Asia Pacific Economy, 18(1), 115–132.

    Article  Google Scholar 

  • Rugman, A. M. (2009). Theoretical aspects of MNEs from emerging economies. In R. Ramamurti & J. V. Singh (Eds.), Emerging multinationals in emerging markets. New York: Cambridge University Press.

    Google Scholar 

  • Rui, H., & Yip, G. S. (2008). Foreign acquisitions by Chinese firms: A strategic intent perspective. Journal of World Business, 43(2), 213–226.

    Article  Google Scholar 

  • Samuelson, P. A., & Nordhaus, W. D. (1989). Economics (13th ed.). New York: McGraw-Hill.

    Google Scholar 

  • Schweizer, R. (2013). SMEs and networks: Overcoming the liability of outsidership. Journal of International Entrepreneurship, 11(1), 80–103.

    Article  Google Scholar 

  • Semadeni, M., Withers, M. C., & Certo, S. T. (2014). The perils of endogeneity and instrumental variables in strategy research: Understanding through simulations. Strategic Management Journal, 35(7), 1070–1079.

    Article  Google Scholar 

  • Slangen, A. H. L., & Hennart, J. F. (2008). Do foreign greenfields outperform foreign acquisitions or vice versa? An institutional perspective. Journal of Management Studies, 45(7), 1301–1328.

    Article  Google Scholar 

  • Storper, M. (1995). Competitiveness policy options: the technology-regions connection. Growth and Change, 26(2), 285–308.

    Article  Google Scholar 

  • Sun, S.L., Peng, M.W., Ren, B., & Yan, D. (2012). A comparative ownership advantage framework for crossborder M&As: The rise of Chinese and Indian MNEs. Journal of World Business, 47(1), 4–16.

  • Tan, D., & Meyer, K. E. (2011). Country-of-origin and industry FDI agglomeration of foreign investors in an emerging economy. Journal of International Business Studies, 42(4), 504–520.

    Article  Google Scholar 

  • Tian, X., & Slocum, J. W. (2014). What determines subsidiary performance? Evidence from China. Journal of World Business, 19(3), 425–430.

    Google Scholar 

  • Tomiura, E. (2007). Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level. Journal of International Economics, 72(1), 113–127.

    Article  Google Scholar 

  • Tsang, E. W. K. (2000). Transaction cost and resource-based explanations of joint ventures: A comparison and synthesis. Organization Studies, 21(1), 215–242.

    Article  Google Scholar 

  • Vermeulen, F., & Barkema, H. (2001). Learning through acquisitions. Academy of Management Journal, 44(3), 457–476.

    Article  Google Scholar 

  • Voss, H., Buckley, P. J., & Cross, A. R. (2010). The impact of home country institutional effects on the internationalization strategy of Chinese firms. Multinational Business Review, 18(3), 25–48.

    Article  Google Scholar 

  • Wang, C., Hong, J., Kafouros, M., & Wright, M. (2012). Exploring the role of government involvement in outward FDI from emerging economies. Journal of International Business Studies, 43(7), 655–676.

    Article  Google Scholar 

  • Wei, Z. (2010). The literature on Chinese outward FDI. Multinational Business Review, 18(3), 73–112.

    Article  Google Scholar 

  • Wei, T., Clegg, J., & Ma, L. (2015). The conscious and unconscious facilitating role of the Chinese government in shaping the internationalization of Chinese MNCs. International Business Review, 24(2), 331–343.

    Article  Google Scholar 

  • Welch, D. E., & Welch, L. S. (1995). The internationalization process and networks: A strategic management perspective. Journal of International Marketing, 4(3), 11–28.

    Google Scholar 

  • Wheeler, D., & Mody, A. (1992). International investment and location decisions: The case of US firms. Journal of International Economics, 33(1/2), 57–76.

    Article  Google Scholar 

  • Williamson, P. J., & Raman, A. P. (2011). How China reset its global acquisition strategy. Harvard Business Review, 89(4), 109–114.

    Google Scholar 

  • Yamakawa, Y., Peng, M., & Deeds, D. (2008). What drives new ventures to internationalize from emerging to developed economies? Entrepreneurship Theory and Practice, 32(1), 59–82.

    Article  Google Scholar 

  • Zhong, W., Peng, J., & Liu, C. (2013). Internationalization performance of Chinese multinational companies in the developed markets. Journal of Business Research, 66(12), 2479–2484.

    Article  Google Scholar 

  • Zhou, Y. (1998). Beyond ethnic enclaves: Location strategies of Chinese producer service firms in Los Angeles. Economic Geography, 74(3), 228–251.

    Article  Google Scholar 

Download references

Acknowledgements

The authors thank the Bavarian Ministry of Education and Culture, Science and Art for the financial support of this study.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dirk Holtbrügge.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Holtbrügge, D., Berning, S.C. Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support. Manag Int Rev 58, 147–170 (2018). https://doi.org/10.1007/s11575-017-0334-y

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11575-017-0334-y

Keywords

Navigation