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The Internationalization Strategies of Chinese State and Private Sector Enterprises in Africa

Xiaohua Lin and Carlyle Farrell

Journal of African Business, 2013, vol. 14, issue 2, 85-95

Abstract: The authors examine differences in the internationalization motives, entry approach, local embeddedness, and performance outcomes of Chinese state-owned enterprises and Chinese privately owned enterprises operating in Africa. The authors' conceptual model explains these differences in light of differences in ownership structure. While prior research has viewed Chinese outward investment from the latecomer perspective, the authors found that the behavior of Chinese privately owned enterprises does not deviate substantially from that described by conventional foreign direct investment theories. Propositions developed are illustrated by case studies, and the theoretical and policy implications are discussed.

Date: 2013
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