Economics and Eclectic Paradigm
LUND UNIVERSITY School of Economics and Management Department of Economics
Internationalization of Chinese MNEs and Dunning’s Eclectic (OLI) Paradigm: A Case study of Huawei Technologies Corporation’s Internationalization Strategy
Author: Beiguang Zhu Supervisor: Professor Sonja Opper
Master Thesis June 2008
Acknowledgements
I would like to express my gratitude to all those who gave me the possibility to complete this thesis.
I am deeply indebted to my supervisor Professor Sonja Opper from the Department of Economics, School of Economics and Management, Lund University, whose stimulating suggestions and continuous encouragement helped me throughout my graduate career and during completion of this thesis.
I want to thank Heidi Li, Senior Branding Manager, Corporate Branding and Communications Department of Huawei Technologies Corporation for giving me permission to commence this thesis in the first instance, to do the necessary research work and to use the official data.
Especially, I would like to give my special thanks to my wife Binbin Xiang, whose patient love enabled me to study in Sweden and complete this paper.
Beiguang Zhu Lund May, 2008
1
Abstract Today the newly emerging Chinese MNEs have increasingly been involved in the internationalization activities, but they have not attracted adequate attention in terms of internationalization studies. This paper will be based on Dunning’s Eclectic (OLI) Paradigm as theoretical foundation and deploy the method of case study to analyze the internationalization strategy of the Chinese high-technology MNE - Huawei Technology Corporation. This study intends to answer 3 questions: 1) What are the key components of Huawei’s internationalization strategy? 2) How much will Dunning’s eclectic paradigm of international production be applied to explain Chinese MNE - Huawei’s internationalization? 3) What are the special characteristics of the Huawei’s internationalization process, which might
Internationalization of Chinese MNEs and Dunning’s Eclectic (OLI) Paradigm: A Case study of Huawei Technologies Corporation’s Internationalization Strategy
Author: Beiguang Zhu Supervisor: Professor Sonja Opper
Master Thesis June 2008
Acknowledgements
I would like to express my gratitude to all those who gave me the possibility to complete this thesis.
I am deeply indebted to my supervisor Professor Sonja Opper from the Department of Economics, School of Economics and Management, Lund University, whose stimulating suggestions and continuous encouragement helped me throughout my graduate career and during completion of this thesis.
I want to thank Heidi Li, Senior Branding Manager, Corporate Branding and Communications Department of Huawei Technologies Corporation for giving me permission to commence this thesis in the first instance, to do the necessary research work and to use the official data.
Especially, I would like to give my special thanks to my wife Binbin Xiang, whose patient love enabled me to study in Sweden and complete this paper.
Beiguang Zhu Lund May, 2008
1
Abstract Today the newly emerging Chinese MNEs have increasingly been involved in the internationalization activities, but they have not attracted adequate attention in terms of internationalization studies. This paper will be based on Dunning’s Eclectic (OLI) Paradigm as theoretical foundation and deploy the method of case study to analyze the internationalization strategy of the Chinese high-technology MNE - Huawei Technology Corporation. This study intends to answer 3 questions: 1) What are the key components of Huawei’s internationalization strategy? 2) How much will Dunning’s eclectic paradigm of international production be applied to explain Chinese MNE - Huawei’s internationalization? 3) What are the special characteristics of the Huawei’s internationalization process, which might
Cited: http://www.hoover.org/publications/clm/issues/4469916.html. 3. China Daily (English, 2005-12-08): “Cheap Labor Can Not Last”, http://www.chinadaily.com.cn/chinagate/doc/2005-12/08/content_501632.htm http://www.huawei.com, 2008-05-06. 11. Huawei Technologies: “Milestones of Huawei”, http://www.huawei.com/corporate_information/milestones.do, 2008-04-18. Interviews: Heidi Li, Senior Branding Manager, Corporate Branding and Communications Department of Huawei Technologies Corporation, 2007-11-18, 2008-04-16, 2008-04-23, 2008-05-03.