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The Determinants and Motivations of Chinese Telecommunication MNEs in Africa: Effects of Host Countries’ Economic Environment on IMNEs’ Location Choice

In: The Operations of Chinese Infrastructure Multinationals in Africa

Author

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  • Yuxuan Tang

    (Shanghai University of International Bus)

Abstract

This chapter investigates the effects of ownership on firm location choices and motivations for foreign market entry. Prior studies suggest that Chinese state owned enterprises (SOEs) investment in Africa is driven by government political motives on macroeconomic conditions and institutional environment whereas private investments are driven by economic incentives. To fill in the gap of ownership difference, it examines strategic behaviour of Chinese telecommunication MNEs in Africa and argue that besides the state incentives, private motives also matter for Chinese investments in the Information and Communication Technology (ICT) sector. Using a unique dataset detailing location choices of two major Chinese ICT in African countries between 2003 and 2010 contributes to the literature of emerging market multinationals in less developed countries by comparing mixed ownership MNEs with private companies. It thus provides a fundamental and complementary analysis for the latter case-study.

Suggested Citation

  • Yuxuan Tang, 2021. "The Determinants and Motivations of Chinese Telecommunication MNEs in Africa: Effects of Host Countries’ Economic Environment on IMNEs’ Location Choice," Springer Books, in: The Operations of Chinese Infrastructure Multinationals in Africa, chapter 6, pages 125-166, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-2562-6_6
    DOI: 10.1007/978-981-16-2562-6_6
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