Chinese multinational enterprises’ corporate political capabilities in overseas markets

Thesis

In a world of rising political uncertainty, it is increasingly challenging for firms to navigate the political landscape. Political challenges can severely affect firms' operations in overseas markets, particularly during home-host country geopolitical confrontations. Hence, it is crucial for firms to develop organisational capabilities to manage political risks and challenges. Prior research argues that variations in firms' strategic responses to host countries' political challenges are shaped by the home country's political environment. However, the existing literature appears to overlook firm-level variations within the same home country: firms may develop different relationships with the home government and, subsequently, manage government relations in different ways. Hence, my thesis seeks to address the research question: “Why do firms originating in the same country develop different political capabilities in overseas markets?” I approached this question empirically by conducting an in-depth qualitative study to investigate how Chinese firms handled host governments' national security concerns. I utilised interview and archival data to present six detailed case studies. My research findings illustrate that the heterogeneity of Chinese firms' political capabilities is shaped by their relationships with the Chinese government. My thesis first contributes to the corporate political capabilities literature by suggesting two additional antecedents – ownership and strategic importance – to explain firms' divergent responses to similar political challenges. Second, it provides an alternative explanation for firms' strategic choices between deploying internal political capabilities and/or relying on external political actors. Finally, my thesis offers practical guidance for business leaders to manage overseas political challenges.

Authors: Qiu, Z

• Type of award: DPhil
• Level of award: Doctoral
• Awarding institution: University of Oxford
• Language: English
• Keywords: corporate political capabilities; China; geopolitics; business-government relations; nonmarket strategy
• Subjects: Management; Government; Business