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3 - Globalisation of Chinese Firms Using Existing Paradigms

Published online by Cambridge University Press:  05 February 2020

David K. Tse  and
Kineta Hung
David K. Tse
Affiliation:
The University of Hong Kong
Kineta Hung
Affiliation:
Hong Kong Baptist University
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Summary

Dunning’s Globalisation (OLI) Model is the best known model of firm globalisation. It extends the cost-advantage perspective to include ownership, locational, and internationalisation advantages as determinants of a multinational corporations’ operation and growth. Using Haier as an exemplary firm, the chapter traces its revival from a non-performing SOE from China to becoming the top brand in home appliances as well as the OLI advantages it can leverage in the unique China context. The chapter also examines the National Development Globalisation Model, a model arising from China’s strong needs for energy and metals to fuel the country’s development and consumption, to address the globalisation of non-manufacturing firms. Using Chalco as an example, the chapter notes that, in spite of the firm’s lack of advantages, its ability to attract unwavering support from the government and its strong leadership to operate in the volatile global environment allow the firm to become the leading aluminium producer.

Keywords

Dunning’s Globalisation (OLI) ModelNational Development Globalisation Modelcost advantagesHaierChalcoZhang Ruimin
Type
Chapter
Information
Dynamic Growth of Chinese Firms in the Global Market
Challenges, Strategies and Implications
 , pp. 31 - 52
Publisher: Cambridge University Press
Print publication year: 2020

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