Research Handbook on the Globalization of Chinese Firms
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Research Handbook on the Globalization of Chinese Firms

Edited by Craig C. Julian, Zafar U. Ahmed and Junqian Xu

This comprehensive research Handbook encompasses an expansive range of perspectives on the globalization process of Chinese firms. Eminent global scholars provide contributions on a variety of topics, including: • industrial innovation; • technological innovation and learning; • the performance of Chinese international joint ventures,; • the global consumer; • Foreign Direct Investment (FDI) including barriers to FDI and FDI in China’s hinterland areas; • the globalization of Chinese business practices in Africa; • the Human Resource Management Transfer Process; • Corporate Information Disclosure in China’s Stock Market; and • the home employment effect.
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Chapter 16: Reconciling differing models of the business: a key step in the transfer of production technology into China's export-led economy

David N. McArthur and Ronald L. Schill


The growth of China's export-led economy has been accompanied by a huge net inflow of capital (Buckley, 2004; Buckley et al., 2002). UNCTAD statistics show inward foreign direct investment (FDI) rising from $95 million USD in 2009 to $121 million USD in 2012 (UNCTAD, 2013). Much inward FDI has been accompanied by technological capital in the form of international technology transfer - often of production plants, machinery, and operating skills, though sometimes the transfer of innovative capabilities is kept separate from the production technology transferred to Chinese units (Lan and Young, 1996a, 1996b). It should be noted that our later research included eight case studies of inward production technology transfers to Chinese subsidiaries and joint-venture partners of multinational enterprises (MNEs) in a variety of different industries and the following experience, though not universal, was more typical: Actually, our engineers make lots of technology innovations for our product line. [Such as] How to make a more reasonable product line? How to help [the] product line make the better efforts? We can implement [install] the product line, usually a professional company does it, but we can implement [install] the product line by ourselves. [Our] company encourages [our engineers] by a creative award every year.

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