EconPapers    
Economics at your fingertips  
 

Small and internationalized firms competing with Chinese exporters

Klaus Friesenbichler and Andreas Reinstaller ()

Eurasian Business Review, 2023, vol. 13, issue 1, No 6, 167-192

Abstract: Abstract The import competition literature suggests that Chinese industrial policies and technological trends have altered the nature of competition with China so that it does not take place on a level playing field anymore. Empirical evidence about firms’ reactions in developed economies in competition with China is inconclusive, however. This paper studies how small, highly internationalized and specialized firms react to the growing penetration of Chinese exporters on their markets. We use a sample of Austrian manufacturing companies to explore the impact of increasing competition on changes in corporate strategy. We propose a novel indicator capturing import competition that highly internationalized companies face. We examine how firms adapt their search strategies related to technological capabilities and markets. While the exposure to Chinese competition has been on average relatively low, its impact on diversification choices has been significant. Companies exposed to growing Chinese competition are more likely to diversify their geographic markets, but less likely to diversify their product portfolio or broaden their competence base. These patterns are also reflected by changes in trade data.

Keywords: China; Competition; Strategy; Diversification; Manufacturing (search for similar items in EconPapers)
JEL-codes: L20 L60 M16 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s40821-022-00228-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Small and internationalized firms competing with Chinese exporters (2023) Downloads
Working Paper: Small and Internationalised Firms Competing with Chinese Exporters (2022) Downloads
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:spr:eurasi:v:13:y:2023:i:1:d:10.1007_s40821-022-00228-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

DOI: 10.1007/s40821-022-00228-x

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-22
Handle: RePEc:spr:eurasi:v:13:y:2023:i:1:d:10.1007_s40821-022-00228-x