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‘Reverse internationalization’ in Chinese firms: a study of how global startup OEMs seek to compete domestically

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  • Tachia Chin
  • Ren-huai Liu
  • Xuemei Yang

Abstract

This research investigates whether the global startup original equipment manufacturers (OEMs) in China could employ their knowledge-acquisition capability developed via internationalization to compete domestically (i.e. reverse internationalization), facing the recession in developed markets. Results examine that knowledge-acquisition capability can help these firms compete in ‘reverse internationalization’, while the conduct of own brand strategy partially mediates the positive relationship between their capability and domestic performance. We contribute to the literature by identifying the unique ‘Chinese global startup OEMs’, recognizing knowledge-acquisition capability as a high-order dynamic capability for such firms, and introducing a novel entrepreneurial phenomenon we call ‘reverse internationalization’.

Suggested Citation

  • Tachia Chin & Ren-huai Liu & Xuemei Yang, 2016. "‘Reverse internationalization’ in Chinese firms: a study of how global startup OEMs seek to compete domestically," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(2), pages 201-219, April.
    • Handle: RePEc:taf:apbizr:v:22:y:2016:i:2:p:201-219
    DOI: 10.1080/13602381.2015.1055087
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    Citations

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    Cited by:

    1. Veronica Scuotto & Tachia Chin & Alberto Pezzi & Marco Pironti, 2022. "CSR best practices for global multi‐tier sustainable supply chain integration of Chinese MNEs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2038-2052, November.
    2. Li, Xiaoqing & Quan, Rose & Stoian, Maria-Cristina & Azar, Goudarz, 2018. "Do MNEs from developed and emerging economies differ in their location choice of FDI? A 36-year review," International Business Review, Elsevier, vol. 27(5), pages 1089-1103.
    3. Qiang Xu & Qianqian Hu & Tachia Chin & Chen Chen & Yi Shi & Jianxin Xu, 2019. "How Supply Chain Integration Affects Innovation in a Digital Age: Moderating Effects of Sustainable Policy," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    4. Tian, Yuan & Wang, Yupei & Xie, Xuemei & Jiao, Jie & Jiao, Hao, 2019. "The impact of business-government relations on firms' innovation: Evidence from Chinese manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 1-8.
    5. Tachia Chin & Yin Yang & Pei Zhang & Xiaofen Yu & Luying Cao, 2019. "Co-creation of Social Innovation: Corporate Universities as Innovative Strategies for Chinese Firms to Engage with Society," Sustainability, MDPI, vol. 11(5), pages 1-13, March.
    6. Shih, Yu-Yuan & Lin, Chih-An, 2022. "Co-location with marketing value activities as manufacturing upgrading in a COVID-19 outbreak era," Journal of Business Research, Elsevier, vol. 148(C), pages 410-419.

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