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To understand the rationale for foreign direct investment of Chinese electronic companies, their location decisions and entry mode choices

Secondary data on foreign direct investment of the top 100 companies in China’s electronics industry are analysed. The first part covers an exploratory analysis of the industry and the second part presents a comparative longitudinal analysis of three case studies of representative companies: Haier, Huawei, and Lenovo.

The three key findings are: (1) market-seeking is the primary motivation for foreign direct investment of Chinese companies in the electronics industry, yet the strategic-asset-seeking gains importance as the internationalization of the company advances; (2) foreign investment path normally starts at adjacent foreign markets, but more distant markets are gradually targeted and become more important for the company; (3) wholly owned investments are the preferred market entry modes in the international expansion.

This research is based on secondary data, and more in-depth, interview-based studies are needed to explore the perceptions of decision-makers, and a plethora of contextual factors, which result in specific market entry decisions. As only the 100 largest companies were studied, future research should put under scrutiny also internationalization of smaller firms.

Implications of such findings are discussed in the light of classic internationalization theories as well as the current research on internationalization of companies from emerging/developing countries.

Provides an account of foreign direct investment in a context of a substantial and growing importance for the practice of international business, and identifies an agenda for promising future scholarly inquiries.

This chapter outlines the philosophic underpinnings of the self-management paradigm developed over the past three decades by China’s Haier Group, a global leader in white goods. The successful transformation of Haier from a small resource-poor firm to a dominant global giant is often attributed to the self-management culture established in the company by its legendary leader Zhang Ruimin. This management paradigm is a function of the humbleness displayed by Mr. Zhang Ruimin and rooted in his strong belief in the traditional Chinese philosophy of I-Ching and Daoism. We show how the hexagram of Qian (“qian”: humbleness, modesty) from I-Ching is linked to Mr. Zhang’s humble approach and analyze how the six parts of the hexagram of Qian are related to the six development stages of the Haier Group. These insights are used to give some thoughts to the leadership challenge associated with the creation of a dynamic and responsive global organization.

Marketing, brand management, promotion management and corporate social responsibility.

Undergraduate and postgraduate.

How does the “country-of-origin” issue affect brands, and what do brands need to do? The case of unique and small corporate social responsibility (CSR) programs and their impact on creating brand awareness.

Aamer Khan, Managing Director Hafet Electrical LLC, the sole distributor for of Haier in United Arab Emirates (UAE) was reviewing their half yearly results. Among the more unconventional strategies they had adopted was one where they used community engagement to get an insight into the local market and develop brand awareness as a caring top quality brand. The CEO of Haier, Zhang Ruimin stressed that “quality is and will remain the essence of business sustainable, whether in the past, present or future”. Aamer was evaluating the effectiveness of the strategy and considering its impact. Should he use a similar strategy next year?

This case deals with the “country-of-origin” issue, an important aspect in branding a key strategy of marketing. The Haier brand and its country-of-origin were investigated among the Emirati (UAE nationals) consumers. This was done as part of a capstone research project by Meerah, Sara and Azza at Zayed University, Dubai. Further, the group created a unique CSR program for the Haier, whereby they invited people to join them in a Walkathon to raise money for a charitable cause. Haier donated various products like refrigerators, air coolers and air conditioners towards this charity. By creating this event, the group raised awareness of the Haier brand among the local population.

What is:

• “Country of origin” (coo) in marketing and its effect on brands?

• The role of CSR in corporate marketing communication?

• The role of small events in building brands?

“Country of origin” (coo) in marketing and its effect on brands?

The role of CSR in corporate marketing communication?

The role of small events in building brands?

Teaching notes.

Legendary Chinese firms have employed e‐business strategies to strengthen their competitive positions in China for market expansion since the late 1990s. E‐business practices have resulted from the convergence of digital technology, intellectual property and customer supremacy. Such convergence is transforming the “old” industrial economy, which was built primarily on tangible assets, standardization, and stand‐alone players, into a “new and virtual” economy, which is being based primarily on intangible assets, customization, and connected players. E‐business requires an integrated alignment of technology, operation, strategy, structure, and human interaction in a continuously expanding network. Consequently, e‐business facilitates a new system—the Paradigm of Network Capitalism, which removes the boundaries of space, time, organization and individuals, and creates virtual communities of stakeholders with new demands for product/service and shared interest and cooperation.

A corporate university is a knowledge management institution established within an enterprise. The purpose of this paper is to investigate the evolution of knowledge activities of corporate university and their relationship, particularly the role of networking in the knowledge management.

Haier, which had the earliest Chinese corporate university in the science and technology manufacturing industry, was employed as a case study. Data were collected by interviews and through consulting the documents of Haier’s corporate university. Grounded theory was used for data analysis.

The paper finds that corporate universities are engaged in three kinds of activities, namely, enterprise operational knowledge transfer, networking activities and scientific and technological activities. There is a dynamic circular relationship among these three kinds of activities, which form a “figure of eight” cycle model. Networking activities are the hub between enterprise operational knowledge transfer and scientific and technological activities. There is a two-way integration of enterprise operational knowledge transfer and science and technological activities via networking activities. Networking activities, thus, play a key role in the development of corporate universities into knowledge management centers. The scope of the key activities of corporate universities is dynamic and expanding. The double circulation effect among key activities in corporate universities has strengthened over time.

By investigating the dynamic nature of the activities of corporate universities, particularly the role of networking in knowledge management, this research enriches the study of the knowledge management of corporate universities.

As entrepreneurial top management teams in multidivisional forms are typically treated in pertinent literature as the default organizational solutions for developing dynamic capabilities, the emerging innovative organizational forms tend to be overlooked, even though they could be a viable means of transforming established enterprises. The present case study examines how Haier's microenterprise and platforms influenced the firm's dynamic capabilities development.

The paper presents a qualitative case study of Haier Group Corporation in China.

The findings indicate that Haier employed a loosely coupled relationship between its headquarters and the microenterprises, developed quasi market-based exchange relationships and established peer-to-peer learning opportunities and coordination among its microenterprises. Data analyses further revealed that Haier has adopted three-step routines to capture market opportunities and enhance operational efficiency. This research extends the sensing-seizing-reconfiguration model typically recommended in the existing literature. It also demonstrates that organizational configuration is an important aspect of dynamic innovation. In summary, the study results showcase microdivisionalization as a new way for developing dynamic capabilities to better adapt to the ever-changing market environments.

In summary, our study showcased microdivisionalization as a new way for firms to change the organization structure and business strategies to better adapt to the ever-changing market environments.

This paper aims to empirically explore the evolution of servitization and how platforms affect the transition between the stages of servitization.

The authors conducted an in-depth case study of a Chinese manufacturer (i.e. Haier) using a longitudinal design. Three rounds of data collection were conducted between 2014 and 2020. The authors carried out 50 semi-structured interviews and 11 workshops to collect data from senior and middle managers of Haier and its business partners.

The authors found that Haier’s servitization journey includes three stages (i.e. product-oriented solution, integrated solution and smart connected solutions) that evolve in the target of the services and the digital components of the solutions. Haier has also developed three types of platforms (i.e. service platform, supply chain platform and platform ecosystem) to support the implementation of servitization. The empirical evidence reveals that platforms can address the complexities that emerged when Haier implements the different stages of servitization as well as enable Haier to transition from one stage of servitization to the next.

This study enhances the current understanding of the evolution of servitization and the roles of digital technologies in the transition between the stages of servitization. It also provides empirical evidence regarding how the platform approach enables the development of servitization. By clarifying the interplay between servitization and platforms, this study provides guidelines for managers on how to develop platforms to both advance and benefit from servitization.

The purpose of this paper is to explore how Chinese enterprises overcome their lack of resource and capabilities and eventually fulfill global resource accumulation, fast innovative commercialization and significant technological breakthrough by establishing and coordinating innovation ecosystem at firm level.

This paper first reviewed the literature on the structure and coordinating mechanism of enterprise innovation ecosystem and identified two important gaps on the characteristics of ecosystem actors and the logic of innovative coordination. Then, the paper adopted grounded analysis about the construction and evolution of Haier’s innovation ecosystem based on longitudinal case data. On the basis of the case study, the construct of firm-level innovation ecosystem and new logic of coordination are formed.

This paper found the emerging phenomenon of sub-organizational ecosystem actors and depicted that the establishing process of firm-level innovation ecosystem went through three majors stages, and the corresponding coordinating logic changed from proactive intervention to reactive self-evolution.

This paper tried to make contributions to the studies of structure and coordinating mechanism of enterprise innovation ecosystem, and proposed the enterprise itself could build firm-level ecosystem within its organizational boundary and interact with external ecosystem. The findings enlightened the nested structure of ecosystem, opened the black box of organizational boundary and broke the limitation that existing researches only analyse innovation ecosystem at system level and regard firms as basic analytical unit. Besides, this paper proposed that the coordination of innovation ecosystem can be passively fulfilled by network effect and ecological evolution, where previous studies mainly focused on proactive institutional intervention and resource investment. This point could provide Chinese enterprises with good references.

This study aims to examine how expatriates’ knowledge can be adopted to transform the mental models at the subsidiary level and develop a sustainability-driven learning organization in the context of emerging multinational enterprises (EMNEs).

Through an inductive interpretive analysis of three Haier subsidiaries from developing countries, this study compares between old and new understandings of sustainability and examines how expatriates’ knowledge can facilitate shifts toward the new to foster a sustainability-driven learning organization.

The authors find that subsidiary employees face strategic and operational ambiguity concerning sustainability issues and that a mix of dissemination and reinforcement routines that align with headquarters’ expectations are used to maintain a continuous sustainability-driven learning pattern. Though EMNE subsidiaries may have contrasting understandings of sustainability, expatriate knowledge transfer can help change subsidiaries’ mental models and thus create sustainable capabilities and mindsets that form a sustainability-driven learning organization at the subsidiary level.

This study reveals the potential in applying expatriate knowledge transfer to transforming sustainable mental models in building sustainability-driven learning organizations.

Given their immense value-creating potential, ecosystems?and whether to build, buy, or join one?have become a top agenda item in boardrooms around the world.

Haier, a highly successful Chinese multinational corporation has developed an effective set of practices for managing an emergent, ecosystem-based business model.

The Haier case illuminates the unique challenges of leading a sprawling, ecosystem-based enterprise that must continually evolve.

Haier employees fall into three categories? platform owners, microenterprise owners and entrepreneurs.

As a strategic innovator, Haier grouped its independent microenterprises into “Ecosystem Micro-Communities” (ECMs) of loosely connected, multi-disciplinary capability clusters organized around end users.