The impact of the Chinese way of doing business on internationalization strategies: Exploring the internationalization process model and the role of guanxi for Chinese firms venturing to advanced economies

Abstract

This thesis explains how managers of Chinese firms can use guanxi when (1) selecting and entering developed markets, (2) overcoming liability of outsidership in those markets, and (3) manage HQ-Subsidiary relationships. The empirical basis for the investigation is formed by interviews with 45 managers at 19 Chinese business-to-business firms internationalizing to Europe. The extant research on guanxi and the internationalization process model serve as theoretical foundation for this research, which employs a qualitative approach. The results give implications for future research and managerial practice