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Ramasamy, Bala; Yeung, Matthew; Laforet, Sylvie
Journal of world business : JWB, 2012, 2012-1-00, 20120101, Volume: 47, Issue: 1Journal Article
This article evaluates the international location decisions made by public listed Chinese firms during the period 2006–2008, using a Poisson count data regression model. Further, we categorize the firms into state-controlled and privately owned according to majority ownership. We find that the determinants of internationalization differ based on ownership. State-controlled firms are attracted to countries with large sources of natural resources and risky political environments. Private firms are more market seekers. Although all firms have strategic intent, the attraction is commercially viable technology rather than core research content. Our findings also show that existing theories can sufficiently explain the actions of private Chinese firms, but adjustments are needed to understand the behavior of state-controlled multinationals.
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