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Organizational Dynamics (2012) 41, 245—253
Available online at
jo u rn al h om ep ag e: ww w.els evier.c o m/loc ate/o rg d yn
Ambidextrous internationalization strategies:
The case of Chinese firms entering the world market
Christiane Prange
Recently, we have seen a significant increase of foreign direct (e.g., strong brand image, sophisticated technologies), which
investment (FDI) from emerging market countries. Among can be transferred abroad so as to exploit certain location
them, China is taking the lead position with outward FDI of advantages (e.g., cheap labor, manufacturing costs). Often, it
around $229 billion in 2009, as indicated by UNCTAD (United is argued that Western firms choose an expansion strategy
Nations Conference on Trade and Development). In trying to by internalizing a foreign partner’s activity (e.g., through
become key players in the international market, a number of acquisition), especially where the market functions poorly.
Chinese firms face the question of how to jump from the
position of a low-cost competitor to a global provider of Emerging Market Firms have their Own Rules
sophisticated products.
Emerging market firms, and Chinese companies in particular,
HOW DO CHINESE FIRMS INTERNATIONALIZE? follow their own rules. At home, they have to adjust to
internal reforms and competitive pressures from foreign
Shanghai Electric Group has started its internationalization multinationals. For instance, when China became a member
trajectory by forming more than 125 local joint ventures with of the Worl
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