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Chinese multinationals in Spain: Determinants of establishment mode choice

Diego Quer Ramón, Enrique Claver Cortés and Laura Rienda García

Cuadernos de Gestión, 2017

Abstract: [EN] Since the beginning of the 21st century, Chinese multinational enterprises (MNEs) are emerging as major global players. Some of them have carried out significant foreign direct investments (FDIs) in developed countries. The main objective of these outward FDIs is to access strategic assets like internationally recognised brands or technological and managerial know-how. As a result, Chinese MNEs are receiving increasing attention in the international management literature. The study of these emerging-market MNEs has generated an interesting epistemological debate among researchers on the applicability of traditional theoretical frameworks. The main question is whether conventional arguments originated in MNEs coming from developed-countries are still valid in the case of developing-country MNEs. While some scholars argue that the analysis of emerging-market MNEs requires new theory, others argue that no new theory is required. Drawing on the transaction cost theory, this paper aims to contribute to this debate by analysing the determining factors of establishment mode choice by Chinese MNEs, namely the choice between acquisition and greenfield investment. From a sample of 88 Spanish subsidiaries of Chinese companies, results show that strategic asset-seeking and a lower growth rate of the Spanish economy are associated with a greater preference for acquisitions. However, industry’s technological intensity turned out to be not significant.

Keywords: chinese multinationals; Spain; establishment mode; multinacionales chinas; España; modo de establecimiento (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
Date: 2017
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Instituto de Economía Aplicada a la Empresa, Revista Cuadernos de Gestión, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

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