Huawei in Venezuela: a review of 2006–2019

Carlos M. Baldo, Richard Vail and Julie Seidel

Revista de Gestão, 2021, vol. 28, issue 4, 358-375

Abstract: Purpose - The aim of this article is to describe Huawei's internationalization process in Venezuela and show how socio-political and economic conditions helped to expedite the company's development in this Latin American nation between 2006 and 2019. Through this internationalization process, Huawei participated in a large technological transition in Venezuelan telecommunications. Design/methodology/approach - This research uses an integrative approach, developing a quasi-case study from a review of the academic literature, contemporary news stories and institutional and practitioner documents. Findings - The review indicates that Huawei was engaged in business with the Venezuelan phone company before its renationalization. Secondly, Huawei's internationalization was a beneficiary of the increased relations between the Venezuelan and Chinese governments, mainly through “oil for loans/goods” agreements. Lastly, this internationalization process includes wholly owned subsidiaries, direct export, greenfield and government joint ventures. Practical implications - This research provides an understanding to other firms and strategists about the benefits of strong bilateral economic relationships between home and host countries. Originality/value - This paper is among the first academic articles that describe the internationalization process of Huawei in Venezuela. Considering the host country's changing political and economic conditions during the last 20 years, such research may provide a perspective for considering other Chinese business expansions in Venezuela and Latin America.

Keywords: Huawei; Venezuela; Internationalization; Telecom; Renationalization (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:regepp:rege-12-2020-0142

DOI: 10.1108/REGE-12-2020-0142

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