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Global integration or local responsiveness? Insights from the case of Chinese MNEs in India

Global integration or local responsiveness? Insights from the case of Chinese MNEs in India

Chen, Pi-Chi and Kim, Bui (2020) Global integration or local responsiveness? Insights from the case of Chinese MNEs in India. In: Kim, Young-Chan, (ed.) China-India Relations: Geo-political Competition, Economic Cooperation, Cultural Exchange and Business Ties. Understanding China . Springer International Publishing, Cham, Switzerland, pp. 119-138. ISBN 978-3030444242 (doi:https://doi.org/10.1007/978-3-030-44425-9_7)

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Abstract

In the 1980s, the global integration and local responsiveness (the I-R) framework was first proposed for multinational enterprises (MNEs) to deal with the dilemma of delivering standardised products and services at subsidiaries across the world or tailoring their products and services to the context of different countries. Researchers suggest MNEs make a trade-off between the two ends of global integration and local responsiveness rather than pursue either extreme of the dichotomy. Based on this trade-off, our study aims to explore the degree of I-R that a subsidiary of MNEs chooses. We argue that this depends on the internal dynamics within the company (e.g. ownership structure) and the external environmental factors (e.g. institutional distance and competition intensity). To illustrate the I-R framework, this study undertakes a comparison between two Chinese MNEs and proposes the argument that the strategic investments made by Chinese firms vary in motivations depending on the firm ownership structure. In this case, the firms analysed in this study are Sany Heavy Industry (a private Chinese enterprise) and CRRC Corporation Limited (a state-owned enterprise (SOE). Our study contributes to the literature on the I-R in MNEs as well as to the growing literature on MNE subsidiaries in emerging economies.

Item Type: Book Section
Uncontrolled Keywords: China, India, Multinational enterprise, Integration, Local responsiveness
Subjects: H Social Sciences > HF Commerce
J Political Science > JZ International relations
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of International Business & Economics
Last Modified: 02 Dec 2020 12:30
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
Selected for REF2021: None
URI: http://gala.gre.ac.uk/id/eprint/30309

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