The different influences of the government and politicians on the international expansion of Chinese firms

Grimm Noh; Dongyoub Shin

doi:10.1057/s41291-018-0044-8

The different influences of the government and politicians on the international expansion of Chinese firms

Grimm Noh, Dongyoub Shin

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

7 Citations (Scopus)

Abstract

This paper examines the influences from the political sector on international expansion of Chinese firms. In analyzing the political sector, we distinguish between ‘formal institutional influences from the government’ and ‘informal relational influences from elite politicians.’ We argue that the government can pressure emerging-market firms to expand abroad despite the risk when outbound globalization is the national policy. However, networks with powerful politicians can discourage international expansion since sufficient domestic returns provided by the political connections can lead to lower motivation for internationalization. The governmental pressures toward internationalization can be moderated by firm size and relational networks with powerful politicians.

Original language	English
Pages (from-to)	366-396
Number of pages	31
Journal	Asian Business and Management
Volume	17
Issue number	5
DOIs	https://doi.org/10.1057/s41291-018-0044-8
Publication status	Published - 2018 Dec 1

Bibliographical note

Funding Information:
Unlike countries where multiple parties compete for power, and where political institutions for administration, legislation, and jurisdiction are independent from one another, CCP exercises comprehensive authority over the entire political and economic system in China. Outbound globalization of Chinese firms is one of the domains to which the Chinese government demonstrates keen interest, and accordingly exercises great power. Luo et al. (2010) provide a detailed description of the institutional environment for Chinese SOEs in their internationalization process. SOEs need to gain approval from the Ministry of Commerce (MOC) for investments abroad, and for central SOEs owned by the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC), approval from SASAC is also required. If the investment is a large-scale project, SOEs also need to gain

Publisher Copyright:
© 2018, Springer Nature Limited.

All Science Journal Classification (ASJC) codes

Business and International Management
Sociology and Political Science
Political Science and International Relations
Strategy and Management

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10.1057/s41291-018-0044-8

Cite this

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abstract = "This paper examines the influences from the political sector on international expansion of Chinese firms. In analyzing the political sector, we distinguish between {\textquoteleft}formal institutional influences from the government{\textquoteright} and {\textquoteleft}informal relational influences from elite politicians.{\textquoteright} We argue that the government can pressure emerging-market firms to expand abroad despite the risk when outbound globalization is the national policy. However, networks with powerful politicians can discourage international expansion since sufficient domestic returns provided by the political connections can lead to lower motivation for internationalization. The governmental pressures toward internationalization can be moderated by firm size and relational networks with powerful politicians.",

author = "Grimm Noh and Dongyoub Shin",

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The different influences of the government and politicians on the international expansion of Chinese firms

Abstract

Bibliographical note

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