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Evolution of Chinese Information and Communication Technology Multinationals: The Case of Lenovo

In: Emerging Multinationals from Asia and Europe

Author

Listed:
  • Takuma Kobayashi

    (Matsuyama University)

Abstract

In the 2000s, China’s outward Foreign Direct Investment increased rapidly. A total of 135 Chinese enterprises were ranked in the Fortune Global 500 by 2023. However, many of them lack firm-specific advantages (FSAs) and are more dependent on country-specific advantages (CSAs); most of their sales are generated in China. This chapter analyses the extent to which Lenovo, a Chinese Information and Communication Technology enterprise, has evolved as a multinational enterprise (MNE) in terms of (i) FSAs, (ii) CSAs, (iii) export/overseas production ratio, and (iv) geographical footprints. Lenovo has reached a mature stage regarding FSAs, as it has enhanced its Research and Development capabilities and built a world-renowned brand. In terms of geographical footprints, Lenovo has reached a mature stage, as it has subsidiaries in many countries worldwide and significant sales overseas. However, Lenovo is still in its infancy regarding CSAs, as it was originally a state institution with strong government relations. In addition, Lenovo is still in its infancy with regard to its export/overseas production ratio, as a large number of personal computers are produced in Asia. Therefore, Lenovo is currently in the adolescent stage as an MNE.

Suggested Citation

  • Takuma Kobayashi, 2024. "Evolution of Chinese Information and Communication Technology Multinationals: The Case of Lenovo," SpringerBriefs in Economics, in: Yumiko Nakahara (ed.), Emerging Multinationals from Asia and Europe, pages 31-50, Springer.
    • Handle: RePEc:spr:spbchp:978-981-97-4042-0_3
    DOI: 10.1007/978-981-97-4042-0_3
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