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The impact of political behaviours on internationalisation : the case of Australian companies internationalising to China

Menzies, Jane L. and Orr, Stuart 2010, The impact of political behaviours on internationalisation : the case of Australian companies internationalising to China, Journal of Chinese economic and foreign trade studies, vol. 3, no. 1, pp. 24-42.

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Title The impact of political behaviours on internationalisation : the case of Australian companies internationalising to China
Author(s) Menzies, Jane L.
Orr, Stuart
Journal name Journal of Chinese economic and foreign trade studies
Volume number 3
Issue number 1
Start page 24
End page 42
Publisher Emerald Group Publishing Ltd
Place of publication United Kingdom
Publication date 2010
ISSN 1754-4408
1754-4416
Keyword(s) Australia
China
politics
economic cooperation
international business
Summary Purpose – The purpose of this paper is to test a model of cooperation between internationalising businesses and local and host country governments in the context of Australian companies internationalising to China.

Design/methodology/approach – The paper presents a model for the political dimensions of internationalising based on corporate political theory and the cooperative view of management. Data were collected from personal interviews with representatives from 40 Australian organisations with businesses or operations in China. The data were analysed using NVivo.

Findings – Assistance provided by the Australian government was often sought and was perceived to be beneficial. Most participants experienced policies and regulations which affected their entry modes. In ten cases they acted as barriers and significantly influenced entry mode choice. The majority of participants viewed the development of relationships with the Chinese government as important and employed a variety of relationship behaviours. Over half of the participants identified the need to understand and deal with the psychically distant government structures of the Chinese government, namely government intervention in business.

Practical implications – The model links the organisational objectives of businesses internationalising to China, understanding the political/regulatory environment, selecting an entry mode and developing/maintaining a successful business. To achieve these objectives corporate political behaviour must reflect the sovereign powers in place at the time.

Originality/value – The paper presents a model which develops the literature for the political dimensions of internationalisation. It also presents empirical data on the political dimensions of internationalising into China. These findings will assist businesses in understanding political factors when internationalising to China.
Language eng
Field of Research 150308 International Business
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2010, Emerald Group Publishing Limited
Persistent URL http://hdl.handle.net/10536/DRO/DU:30031339
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