Risk of marginalization in the process of internationalization

Zhenzhong Ma and Zhenning Yang

Nankai Business Review International, 2012, vol. 3, issue 1, 52-64

Abstract: Purpose - The purpose of this paper is to explore the process of internationalization and its associated risk of marginalization for the emerging Chinese multinationals; also to examine typical strategies emerging Chinese multinationals employ to deal with this challenge in order to provide insights for Chinese firms that are planning to enter the global market. Design/methodology/approach - Using a sample of Chinese multinationals that are listed in the Hong Kong Stock Exchange, this study conducts a multiple‐case analysis on three different Chinese multinationals to explore their experiences in the process of internationalization and their unique approaches to the risk of marginalization. Findings - The results show that internationalized Chinese firms are strengthening their control over core businesses, designing effective corporate governance policy and adjusting their capital structure to increase their actual control in order to minimize the risk of marginalization accompanying their internationalization process. Originality/value - While an increasing number of Chinese firms are on a fast track of internationalization to enter the global market, the risk of marginalization has become a prominent concern for emerging multinationals and many newly internationalized Chinese firms are faced with a crisis of identity, and consequently they may be marginalized, with the risk of losing control over their own companies and being excluded from major government projects or significant R&D funding opportunities in China. This paper explores Chinese firms' risk of marginalization in their internationalization process and their approaches to dealing with this risk. The paper's findings will provide important insights for Chinese firms that plan to go international and will make an important contribution to the literature and enrich our understanding of Chinese multinationals and their strategic expansion in the era of globalization.

Keywords: China; Multinational companies; International business; Corporate governance; Capital structure; Chinese multinationals; Global market; Identity; Risk of marginalization (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:nbripp:v:3:y:2012:i:1:p:52-64

DOI: 10.1108/20408741211201917

Access Statistics for this article

Nankai Business Review International is currently edited by Dr Xuexiu Wang and Professor Li Wei'an

More articles in Nankai Business Review International from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().