Factors Driving Firms from Emerging Countries into the Global Market: The Case of Chinese SMEs Entering the North East of England

Factors Driving Firms from Emerging Countries into the Global Market: The Case of Chinese SMEs Entering the North East of England

Rose Quan (Northumbria University, UK) and Zhibin Lin (Northumbria University, UK)
DOI: 10.4018/978-1-5225-2345-1.ch016
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Abstract

The purpose of this chapter is to identify the key factors that explain the decision of Chinese small and medium sized enterprises' (CSMEs) investment into the North East of England. The authors conducted 23 semi-structured interviews with key decision makers of Chinese SMEs that have business operations in the North East of England. It has been found that there are four major categories of factors that drive Chinese SMEs' investment into the North East of England: 1) resource-based factors; 2) home and host institutional factors; 3) network factors; and 4) international entrepreneurial factors. The findings have policy implications for both the governments of the UK and China, as well as managerial implications for future Chinese investors. This chapter provides fresh explanation of Chinese SMEs' investment into a developed economy.
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Background

The extant international management literature is dominated with studies of mature multinational corporations, whereas research on the internationalisation of SMEs is only a recent endeavour (Ruzzier, Hisrich, & Antoncic, 2006). To build a holistic theoretical framework, a review of the major theories explaining firm’s motivation for internationalisation was conducted: resource-based view, institution-based view, network theory, followed by a review of the international entrepreneurship theory, which is particularly relevant for the internationalisation of SMEs.

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