The Emergence of Resources Seeking Chinese Firms’ Specific Advantages in Emerging Market

Ojo Olukayode Iwaloye, Hong Kei Im, Adeniyi Damilola Olarewaju, Ayantunji Gbadamosi, Jose Alves and Michael Trimarchi
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Ojo Olukayode Iwaloye: School of Business, Macau University of Science and Technology, Macau SAR, China
Hong Kei Im: School of Business, Macau University of Science and Technology, Macau SAR, China
Adeniyi Damilola Olarewaju: Facultad: International Business, Tecnologico de Monterrey, Toluca 50110, Mexico
Ayantunji Gbadamosi: Royal Docks School of Business and Law, University of East London, London E15 1NF, UK
Jose Alves: Faculty of Business Administration, City University, Macau SAR, China
Michael Trimarchi: Faculty of Business and Law, University of Saint Joseph, Macau SAR, China

Sustainability, 2022, vol. 14, issue 14, 1-15

Abstract: It is argued that the role of the Chinese government to support the cross-border operations of Chinese firms is to assist these firms in overcoming their limited established brands, and their disadvantages in technology and managerial resources, which were also the reasons why such firms decided to enter emerging markets instead of developed markets. This strategic choice is preferred to avoid direct confrontation with established firms from developed countries endowed with superior ownership advantages. Therefore, Chinese resources seeking firms innovate by increasing investment in developing and emerging markets to develop unique ownership advantages for sustainable market development and competitive advantage. This research investigates the ownership advantages of resources seeking Chinese firms in these markets using the OLI theory. The paper contributes to explaining the specific advantages of Chinese MNEs when entering emerging markets. The study applied a two-stage qualitative methodology to examine Chinese firms operating in Nigeria. The first stage included an exploratory study based on interviews with key informants and experts while the second stage included a case study methodology. The study focused on resources seeking Chinese MNEs operating in Nigeria.

Keywords: resources seeking MNEs; emerging markets; ownership advantages; OLI theory and Chinese firms (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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