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Confucian dynamism and Dunning's framework: Direct and moderation associations in internationalized Chinese private firms

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  • Ji, Junzhe
  • Dimitratos, Pavlos

Abstract

This research investigates whether an upper-echelon perspective incorporating a unique managerial attribute, namely, Confucian dynamism (CD), which draws from China's cultural heritage, can enrich Dunning's ownership–location–internalization (OLI) framework. This study examines the activities of 233 internationalized Chinese private firms. Its findings suggest that the CD of individual decision-makers negatively affects the adoption of equity modes (direct association); and lessens the effects of ownership and location advantages on the adoption of equity modes. However, it does not influence the relationship between internalization advantages and equity modes (moderation associations). The contribution of this study is that it effectively complements the “rational” OLI framework through the inclusion of CD and its interactions with OLI variables to provide a more comprehensive account of the international entry mode decisions of Chinese private firms.

Suggested Citation

  • Ji, Junzhe & Dimitratos, Pavlos, 2013. "Confucian dynamism and Dunning's framework: Direct and moderation associations in internationalized Chinese private firms," Journal of Business Research, Elsevier, vol. 66(12), pages 2375-2382.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:12:p:2375-2382
    DOI: 10.1016/j.jbusres.2013.05.023
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    4. Deng, Ping & Zhang, Shuo, 2018. "Institutional quality and internationalization of emerging market firms: Focusing on Chinese SMEs," Journal of Business Research, Elsevier, vol. 92(C), pages 279-289.
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    6. Yang, Zhilin & Su, Chenting, 2013. "Understanding Asian business strategy: Modeling institution-based legitimacy-embedded efficiency," Journal of Business Research, Elsevier, vol. 66(12), pages 2369-2374.
    7. Tang, Ryan W. & Buckley, Peter J., 2020. "Host country risk and foreign ownership strategy: Meta-analysis and theory on the moderating role of home country institutions," International Business Review, Elsevier, vol. 29(4).

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