Strategic Implications of Global Integration and Local Responsiveness for Chinese Multinationals

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MRN 31,12

922

Strategic implications of global integration and local responsiveness for Chinese multinationals

An area for future study

Di Fan, Chris Nyland and Cherrie Jiuhua Zhu

Faculty of Business and Economics, Department of Management, Monash University, Clayton, Australia

Abstract

Purpose – Based on the review of extant international business and management literature, this paper aims to examine the global integration (GI) and local responsiveness (LR) paradigm and its impact on the adoption of international business strategy (IBS) by multinational corporations (MNCs); second, discuss determinants that are critical in the process of forming IBS by MNCs; and third identify the lacuna in current research with respect to strategic implications of the framework for MNCs from emerging economies such as Chinese multinational corporations (CMNCs). Design/methodology/approach – Based on the extant literature review, this paper identifies a research gap and proposes several research questions for future study. First, the paper reviews prior studies on the GI-LR model and its impact on and strategic implications for IBS. Second, it examines how MNCs from developed countries adopt different types of IBS and what determinants drive their decision-making. Third, it attempts to discuss why CMNCs should be studied in terms of their choice of IBS based on the GI-LR mode. The paper concludes with research questions for future study. Findings – This paper summarizes determinants of IBS in a three-category table mainly based on prior studies on the GI-LR model from developed countries. As a consequence, it identifies a future research area in the field of international management. Originality/value – This paper is based on a comprehensive review of prior studies related to the GI-LR framework. The aim of the study is to identify a new research area in...