Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales
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2014-04Keyword
Global production network approachCompetitor analysis
Foreign MNEs
Domestic sales
Exports
Indigenous Chinese firms
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(c) 2014 Springer-Verlag Berlin Heidelberg. Full-text reproduced in accordance with the publisher's self-archiving policy.Peer-Reviewed
YesOpen Access status
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Incorporating the global production network approach and competitor analysis, this paper establishes an analytical framework with two hypotheses for the role of foreign multinational enterprises (FMNEs) in indigenous firms’ exports and domestic sales. First, the presence of FMNEs as a whole is likely to have a negative impact on indigenous firms’ domestic sales but a simultaneous positive impact on their exports in an emerging economy like China. Second, the presence of MNEs from Hong Kong, Macau and Taiwan (HMT MNEs) is more likely to generate this pattern of impact than MNEs from other countries (Other FMNEs). The FDI-led export strategy contributed to the dominance of the scenario described by the first hypothesis in China, while a higher degree of market commonality and resource similarity of HMT MNEs with that of indigenous Chinese firms than Other FMNEs leads to the second hypothesis. These novel hypotheses are tested and supported by a very large and recent firm-level panel dataset from Chinese manufacturing.Version
Accepted ManuscriptCitation
Wang J, Wei Y, Liu X, Wang C and Lin H (2014) Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales. Management International Review. 54(2): 195-223.Link to Version of Record
https://doi.org/10.1007/s11575-013-0195-yType
Articleae974a485f413a2113503eed53cd6c53
https://doi.org/10.1007/s11575-013-0195-y