Study on Reverse Investment of Chinese Enterprises in Developed Economies: A Strategic Perspective

The question why so many Chinese enterprises have invested in the developed economies is an important topic in practice and to the strategic research. While most existing literatures seldom mainly deal with this issue, this paper attempts to fill in this gap. In particular, its focus has been divided into three different aspects. With the institution-based view, industry-based view, and resource and capability-based view, an integrated model to shed light on the motivation of Chinese firms investing in the developed economies is proposed in the paper. Conclusions lastly confirm that the institution in home country and host country, technology intensity, domestic competition, organizational learning, and strategic alliance are very important in this process. The significance of this study lies not only in the dedication to Chinese firmspsila practice, but also in the contributions to stimulate possible theoretical extensions on multinational investment from emerging economies, which is not limited to China.