The internationalization of emerging market firms: motivations and approaches

In spite of the growing international presence of companies from different emerging economies, most studies on firms internationalization are still grounded in the paradigms of Western countries. Most of them refer only to outward-oriented activities and do not take into account the so-called inward internationalization. It seems then important to analyze more in-depth these two issues with particular reference to the context of an emerging economy such as the one of China. The determination of Chinese firms to address their initial international competitive weaknesses, and the strategies they employ to do so, appear to have been inadequately recognized in literature that remains too wedded to the thesis that internationalization proceeds on the basis of prior competitive advantage (Child and Rodriguez, 2005). This traditional view in fact gives insufficient weight to the role of both ‘inward’ and ‘outward’ internationalization in addressing competitive disadvantages through learning and asset acquisition. The purpose of this study is to analyze the unique motivations and routes to internationalization among private owned Chinese firms. Using a qualitative methodology based on multiple case studies, the research will contribute to existing literature by combining some elements of the mainstream theories on the field of IB with a new perspective emerging from the analysis of Chinese private-owned firms routes to internationalization. The opportunity for an extension of the existing theoretical frameworks will be considered. The present work will also lead to a better understanding of their competitive position and relationships with foreigners within the international context.