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Three-stage internationalization process of Company S.

Three-stage internationalization process of Company S.

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With the internationalization of firms from emerging-markets, the upgradation along the global value chain of emerging-market multinational enterprises (EMNEs) has attracted the attention of academics and industries. However, the role of upgradation of EMNEs in a host country to the transition of EMNEs in the home country is ignored. This study exp...

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Context 1
... information in the Section 4 suggests that, based on the key activities and location, internationalization along the global value chain of Company S (including Company S-Shaoxing and Company S-Germany) can be divided into three stages, as shown in Figure 3. The available competences, resources/knowledge, business environment, learning/technology transfer, and the market locations of Company S in each stage are summarized in Table 1. ...
Context 2
... the second stage, Company S-Shaoxing provided PV products to domestic and foreign markets, while Company S-Germany worked in foreign markets to develop PV electricity generation, as shown in Figure 3 and Table 1. In this stage, through the cooperation of two subsidiaries, Company S-Germany finished more than 10 PV electricity generation projects in Germany, Italy, Romania, Denmark, and so on. ...
Context 3
... internationalization process of company S was specific: it set up a service company in a foreign country, not an acquisition, nor a sale, as shown in Figure 3, thus differing from the traditional internationalization process of Chinese firms, which involves moving from domestic markets to foreign markets, and from production in China to production in China and in foreign countries, as Lund mentioned [19]. Although some Chinese firms have subsidiaries that provide engineering services and conduct engineering projects in Europe and other regions for their customers, these are still not as same as those of Company S. The subsidiary of Company S in Germany is not only a customer of Company S in Shaoxing, but the owner of the PV electricity generation projects, not just a contractor for those projects. ...
Context 4
... with the internationalization process proposed by Lund [19], the internationalization process (Figure 3) emphasizes the establishment of an internal market in stage 2 and businesses in the upstream part of the value chain rather than production in a foreign market. As presented in this case, the Company S Group established a production base overseas to engage in foreign production and then later achieved global production in stage 3 rather than stage 2. We assume one of the main reasons for the difference from Lund's model is because Chinese PV firms, like Company S in the case, were export-oriented before the antidumping and other trade conflicts. ...
Context 5
... first, the firm exporting components to the foreign countries is promoted to be a firm whose subsidiary is offering the engineering projects, operations, and services in the host countries and other foreign countries. It could be recognized as the international upgradation stage 1 in Figure 5: from the exporting of components from the firm in the home country (such as the first stage in Figure 3) to the exporting of also providing the complete package of components, engineering services, and the operation of the final product (such as PV plants at the second stage in Figure 3). Then, the development of the subsidiary in the host country advances the transition of firm in the home country (such as the third stage in Figure 3), as shown in the international upgradation stage 2 in Figure 5. ...
Context 6
... first, the firm exporting components to the foreign countries is promoted to be a firm whose subsidiary is offering the engineering projects, operations, and services in the host countries and other foreign countries. It could be recognized as the international upgradation stage 1 in Figure 5: from the exporting of components from the firm in the home country (such as the first stage in Figure 3) to the exporting of also providing the complete package of components, engineering services, and the operation of the final product (such as PV plants at the second stage in Figure 3). Then, the development of the subsidiary in the host country advances the transition of firm in the home country (such as the third stage in Figure 3), as shown in the international upgradation stage 2 in Figure 5. ...
Context 7
... could be recognized as the international upgradation stage 1 in Figure 5: from the exporting of components from the firm in the home country (such as the first stage in Figure 3) to the exporting of also providing the complete package of components, engineering services, and the operation of the final product (such as PV plants at the second stage in Figure 3). Then, the development of the subsidiary in the host country advances the transition of firm in the home country (such as the third stage in Figure 3), as shown in the international upgradation stage 2 in Figure 5. The international upgradation stage 2 in Figure 5 emphasizes the process of internal product markets and technology transfer, which are approaches to upgrading and interaction between partners. ...

Citations

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