This thesis combines the gravity model with Dunning’s four motivations and three control variables for Chinese outward Foreign Direct Investment (OFDI), and provides an empirical country level analysis on the determinants of Chinese OFDI in 34 OECD countries from 2003 to 2010. I find that resource-seeking motivation is a determinant of Chinese OFDI; the market-seeking motive is shown insignificant influence on Chinese OFDI; the strategic asset-seeking motivation of Chinese OFDI is not supported due to its unexpected negative sign. Moreover, the efficiency seeking motivation was not considered in previous studies due to low labor cost in China. In this thesis, by using real labor cost as a proxy, I prove that Chinese OFDI is not driven by efficiency seeking motive.

The internationalization of Chinese companies is a new reality. This is even more innovative if we isolate Chinese private firms and in particular those having businesses in developed countries as targets. If the first internationalizations of Chinese private firms to developed countries showed us less than optimal results; the latest show mixed outcomes. Interestingly, some of the latest firms with positive results are breaking through stable and complex global value chains, such as the automotive industry, to become first tier suppliers to transnational assemblers and even acquire large and apparently more capable first-tier global suppliers in developed countries. Based on the relevant literature, namely: automotive global value chain (Holweg et al., 2009; Humphrey & Memedovic, 2003; Sturgeon & Lester, 2004; Sturgeon & Van Biesebroeck, 2011; Thun, 2001); developing countries firms internationalization (Boisot & Meyer, 2008; Buckley et al., 2007; Child & Rodrigues, 2005; Dunning, 2006b; Luo & Tung, 2007; Mathews, 2006); and Chinese business system (Redding & Witt, 2009; Whitley, 1992, 1999b; Witt & Redding, 2013a, 2013b; Zhang & Whitley, 2013); this is not expected. This is why we decided to thoroughly understand the dynamic capabilities of one of such firms. Using an in-depth case study the analysis was performed with an integrative tri- perspective approach using institutional, industrial and firm levels. The starting point was on the understanding of the dynamic capabilities that the Chinese firm had since its incorporation until become a first-tier supplier to a transnational assembler followed by its internationalisation. Delving deeper into the internationalisation of the organisation, the study analysed, using the business system framework, how the Chinese firm was able to acquire and manage its new acquisition, which had superior tangible and intangible capabilities, and successfully overcame the predictable clashes that such a setting creates. This is in line with the call for exploratory research (Deng, 2012; Meyer, 2014; Narula, 2012; Ramamurti & Singh, 2009) due to the still infancy of the problem under study, the anecdotal descriptions, and the lack of reliable quantitative data. Our findings show us a Chinese firm with specific and divergent dynamic capabilities since its incorporation, when compared with the expected and typical companies, that should have emerged from the Chinese business system. A clear focus in a unique industry associated with the ambition, yet constraints, to become a global company, combined with the necessity of an industrial upgrade, and a deliberate strategy that allowed the firm to become a turnover company of €1 Billion in less than ten years. Furthermore, the long-term vision of the group and the use of a supportive partnering strategy for the post- acquisition period has been an essential component of the firm's success. Finally, we found that the firm has been joining disperse competences and resources it was lacking, using different dynamic capabilities, by grouping and directing them into a specific well-stated vision. From a theoretical perspective, these findings are particularly important since they do not support the institutional arbitrage literature nor accommodate the current different theoretical extensions on international business literature. From an empirical sense we explain that firms are not fate to integrate in a post M&A period and describe how this can be achieved.

This thesis examines the rising phenomenon of the internationalisation of Chinese firms, and aims to shed new light on our understanding of the emergence of firms from emerging economies in the global market. It consists of two parts: the country level study and the firm level. The former identifies the domestic and locational determinants of Chinese outward foreign direct investment (OFDI), while the latter examines the influence of dynamic capabilities and institutions on the post-internationalisation performance of Chinese firms, with a focus on state-owned enterprises (SOEs). To explore the domestic and locational determinants of Chinese OFDI, the thesis integrates network theory with the traditional explanations of OFDI, the investment development path and the eclectic paradigm. By doing so, a new factor, human mobility, is identified as one of the important domestic and locational determinants of Chinese OFDI. Drawing upon a time series data analysis for the period 1979-2007, this study confirms that Chinese OFDI is driven by its domestic economic development, human mobility and knowledge development and accumulation, and it has a substitute relationship with exports. By examining Chinese OFDI flows to 13 OECD countries over the period 1999-2007, it is shown that human mobility, the strategic assets of the host country, foreign direct investment to China and cultural distance have a positive impact on the locational choice of Chinese OFDI to OECD countries. To investigate the influence of dynamic capabilities and institutions on the post-internationalisation performance of Chinese firms, this study integrates the dynamic capability framework and the institution-based view, and embeds the analysis in a multi-perspective conceptual framework. It draws on four case studies of Chinese SOEs. The analysis shows the importance of internal dynamic capabilities in achieving overseas success when dealing with changing environments. The managerial mindset has a moderate effect on the impact of dynamic capabilities on post-internationalisation performance. The case analysis also shows how the external institutional environment of both host and home countries influence the performance of Chinese SOEs. ii Support from both host and home country governments, unsurprisingly, has a positive influence on performance. However, too much intervention from the home country government imposes constraints on the firms and reduces their willingness to commit to internationalisation. This thesis makes a number of contributions to the existing literature. First, it provides a better understanding of the overall picture of Chinese OFDI from the macro perspective. The findings also contribute to our understanding of the rise of OFDI from emerging economies in general and from China in particular. Second, a new factor, human mobility, is identified and proved to be significant in determining Chinese OFDI. In this era of globalisation, human mobility has become the driving force of OFDI from emerging economies. Third, a first step is taken towards exploring the influence of both internal and external factors on the post-internationalisation performance of Chinese firms. In order to achieve overseas success, not only do Chinese firms need to improve their internal dynamic capabilities, but also attention needs to be paid to the external institutional environment, which has a significant impact on the performance of Chinese firms pursuing overseas success.

Após a abertura econômica, empresas brasileiras de diversos setores deram início ou ampliaram seus processos de internacionalização. Esse movimento acentuou-se a partir de 2004, quando os investimentos diretos no exterior das transnacionais brasileiras (IBDs) cresceram em uma magnitude sem precedentes. A recente expansão internacional, entretanto, difere das experiências passadas não apenas no volume dos investimentos, mas também quanto ao seu destino e qualidade, que abarcam um número crescente de países e setores. A presente dissertação contempla uma detalhada caracterização da internacionalização de 148 transnacionais brasileiras nas últimas duas décadas no que diz respeito a sua composição setorial e à localização geográfica dos IBDs. Por meio de análises quantitativas e qualitativas, chegamos a conclusões que desconstroem as ideias recorrentes na literatura acadêmica de que esse movimento estaria restrito a setores intensivos em commodities ou concentrado na América Latina. Ao evidenciarmos as correlações existentes entre os setores de atividade das empresas e suas estratégias de inserção internacional, demonstramos que as empresas mais intensivas em tecnologia buscam a internacionalização primordialmente nos maiores e mais dinâmicos mercados do globo como uma forma de reforçar os laços com os clientes e obter acesso a novos conhecimentos produtivos e tecnologias. Adicionalmente, a presente dissertação procura superar as limitações da perspectiva da gestão das empresas, predominante na literatura acadêmica sobre o tema, ao investigar os determinantes externos da recente intensificação da internacionalização das empresas brasileiras por meio de uma abordagem transdisciplinar. Nesse sentido, contextualiza historicamente a inserção externa das transnacionais brasileiras desde a década de 70 até os dias de hoje, analisando em detalhes os impactos da reestruturação da geografia produtiva internacional, da difusão de novas tecnologias e de fatores macroeconômicos e políticos sobre os fluxos de IBDs. Por meio dessa mudança de perspectiva, é possível alcançar uma melhor compreensão das características da trajetória recente de internacionalização das empresas brasileiras, bem como novas implicações para a formulação de políticas industriais. / After economic liberalization, Brazilian companies from several sectors initiated or expanded their internationalization processes. This trend became more pronounced after 2004, when Brazilian outward foreign direct investment (OFDI) grew with an unprecedented magnitude. The recent international expansion, however, differs from past experiences not only in the volume of investments, but also regarding their destiny and quality, covering an increasing number of countries and sectors. This dissertation includes a detailed characterization of the internationalization process of 148 Brazilian transnational companies (TNCs) during the last two decades, with particular reference to their sectoral composition and the geographical location of their OFDI projects. Through quantitative and qualitative analysis, this research reaches conclusions that deconstruct the recurring ideas in the academic literature that the internationalization of Brazilian companies would be restricted to commodities intensive sectors or concentrated in Latin America. By revealing the correlations between different sectors of economic activity and their international insertion strategies, we demonstrate that companies from technology-intensive sectors seek internationalization primarily in the largest and most dynamic markets of the world, as a way to strengthen ties with customers and gain access to new knowledge and technologies. Additionally, this dissertation seeks to overcome the limitations of the international business perspective, prevalent in the academic literature on the topic, by investigating the external determinants of the recent intensification of Brazilian OFDI through a transdisciplinary approach. In so doing, this research historically contextualizes the internationalization of Brazilian TNCs from the 70s to the present, analyzing in detail the impacts of the changing geography of international production, the diffusion of new technologies and macroeconomic and political factors on the Brazilian OFDI. This change of perspective allows a better understanding of the characteristics of the recent internationalization of Brazilian companies and also illuminates conclusions that lead to new implications for the formulation of industrial policies.

Após a abertura econômica, empresas brasileiras de diversos setores deram início ou ampliaram seus processos de internacionalização. Esse movimento acentuou-se a partir de 2004, quando os investimentos diretos no exterior das transnacionais brasileiras (IBDs) cresceram em uma magnitude sem precedentes. A recente expansão internacional, entretanto, difere das experiências passadas não apenas no volume dos investimentos, mas também quanto ao seu destino e qualidade, que abarcam um número crescente de países e setores. A presente dissertação contempla uma detalhada caracterização da internacionalização de 148 transnacionais brasileiras nas últimas duas décadas no que diz respeito a sua composição setorial e à localização geográfica dos IBDs. Por meio de análises quantitativas e qualitativas, chegamos a conclusões que desconstroem as ideias recorrentes na literatura acadêmica de que esse movimento estaria restrito a setores intensivos em commodities ou concentrado na América Latina. Ao evidenciarmos as correlações existentes entre os setores de atividade das empresas e suas estratégias de inserção internacional, demonstramos que as empresas mais intensivas em tecnologia buscam a internacionalização primordialmente nos maiores e mais dinâmicos mercados do globo como uma forma de reforçar os laços com os clientes e obter acesso a novos conhecimentos produtivos e tecnologias. Adicionalmente, a presente dissertação procura superar as limitações da perspectiva da gestão das empresas, predominante na literatura acadêmica sobre o tema, ao investigar os determinantes externos da recente intensificação da internacionalização das empresas brasileiras por meio de uma abordagem transdisciplinar. Nesse sentido, contextualiza historicamente a inserção externa das transnacionais brasileiras desde a década de 70 até os dias de hoje, analisando em detalhes os impactos da reestruturação da geografia produtiva internacional, da difusão de novas tecnologias e de fatores macroeconômicos e políticos sobre os fluxos de IBDs. Por meio dessa mudança de perspectiva, é possível alcançar uma melhor compreensão das características da trajetória recente de internacionalização das empresas brasileiras, bem como novas implicações para a formulação de políticas industriais. / After economic liberalization, Brazilian companies from several sectors initiated or expanded their internationalization processes. This trend became more pronounced after 2004, when Brazilian outward foreign direct investment (OFDI) grew with an unprecedented magnitude. The recent international expansion, however, differs from past experiences not only in the volume of investments, but also regarding their destiny and quality, covering an increasing number of countries and sectors. This dissertation includes a detailed characterization of the internationalization process of 148 Brazilian transnational companies (TNCs) during the last two decades, with particular reference to their sectoral composition and the geographical location of their OFDI projects. Through quantitative and qualitative analysis, this research reaches conclusions that deconstruct the recurring ideas in the academic literature that the internationalization of Brazilian companies would be restricted to commodities intensive sectors or concentrated in Latin America. By revealing the correlations between different sectors of economic activity and their international insertion strategies, we demonstrate that companies from technology-intensive sectors seek internationalization primarily in the largest and most dynamic markets of the world, as a way to strengthen ties with customers and gain access to new knowledge and technologies. Additionally, this dissertation seeks to overcome the limitations of the international business perspective, prevalent in the academic literature on the topic, by investigating the external determinants of the recent intensification of Brazilian OFDI through a transdisciplinary approach. In so doing, this research historically contextualizes the internationalization of Brazilian TNCs from the 70s to the present, analyzing in detail the impacts of the changing geography of international production, the diffusion of new technologies and macroeconomic and political factors on the Brazilian OFDI. This change of perspective allows a better understanding of the characteristics of the recent internationalization of Brazilian companies and also illuminates conclusions that lead to new implications for the formulation of industrial policies.

Submitted by Eliene Soares da Silva (eliene.silva@fgv.br) on 2013-02-14T11:32:36Z No. of bitstreams: 1 MPGI MasterThesis Mattia Ambrosini 645094.pdf: 1221533 bytes, checksum: 1117aaa68ec08569df715c16c4e0e0d0 (MD5) / Approved for entry into archive by Eliene Soares da Silva (eliene.silva@fgv.br) on 2013-02-14T11:44:31Z (GMT) No. of bitstreams: 1 MPGI MasterThesis Mattia Ambrosini 645094.pdf: 1221533 bytes, checksum: 1117aaa68ec08569df715c16c4e0e0d0 (MD5) / Made available in DSpace on 2013-02-14T12:08:26Z (GMT). No. of bitstreams: 1 MPGI MasterThesis Mattia Ambrosini 645094.pdf: 1221533 bytes, checksum: 1117aaa68ec08569df715c16c4e0e0d0 (MD5) Previous issue date: 2012-12-20 / The thesis at hand adds to the existing literature by investigating the relationship between economic growth and outward foreign direct investments (OFDI) on a set of 16 emerging countries. Two different econometric techniques are employed: a panel data regression analysis and a time-series causality analysis. Results from the regression analysis indicate a positive and significant correlation between OFDI and economic growth. Additionally, the coefficient for the OFDI variable is robust in the sense specified by the Extreme Bound Analysis (EBA). On the other hand, the findings of the causality analysis are particularly heterogeneous. The vector autoregression (VAR) and the vector error correction model (VECM) approaches identify unidirectional Granger causality running either from OFDI to GDP or from GDP to OFDI in six countries. In four economies causality among the two variables is bidirectional, whereas in five countries no causality relationship between OFDI and GDP seems to be present.