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Comparing Chinese and the Indian Software MNCs: Domestic and Export Market Strategies and Their Interplay

Author

Listed:
  • Niosi, Jorge

    (Department of Management and Technology, University of Québec at Montréal)

  • Tschang, F. Ted

    (School of Business, Singapore Management University)

Abstract

China and India are emerging as major new entrants in the international software industry. Both are rapidly learning through outsourcing with multinational enterprises from advanced nations. Yet, their paths to this dynamic sector are very different. Chinese software firms have focused on their domestic market by working with foreign MNCs, while they move cautiously abroad. Indian firms, despite already being large, continue to expand overseas as well as to climb the value chain. We show that a macro perspective on the global movement of work can be gained by utilizing concepts from different approaches to the MNC. At the same time, the innovation systems perspective is necessary to explain the foundations of the industry. The paper provides hypotheses and performs an initial validation of them. It concludes that the internationalization and learning processes are somewhat different in the Chinese and Indian MNCs, and provides explanations for the different patterns.

Suggested Citation

  • Niosi, Jorge & Tschang, F. Ted, 2008. "Comparing Chinese and the Indian Software MNCs: Domestic and Export Market Strategies and Their Interplay," MERIT Working Papers 2008-050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2008050
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    File URL: https://unu-merit.nl/publications/wppdf/2008/wp2008-050.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    outsourcing; software industry; industrial development; MNCs; MNEs; multinational enterprise; China; India;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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