Chinese outward foreign direct investment: The reasons why some Chinese firms fail in Norway

Yuxia Wang, Ilan Alon

Research output: Contribution to journalArticlepeer-review

Abstract

Recent years have seen a dramatic rise in Chinese multinationals investing in various projects around the world. While there have been numerous studies of Chinese outward foreign direct investment (FDI), there have been far fewer that examine the factors that relate to their success or failure from the perspective of the Chinese investor. Here we present a cross-case analysis of four examples of Chinese investments in Norway that failed to produce a profit. Using semi-structured interviews with Chinese and local managers, government agencies, and data from secondary sources, we identify five factors that contributed to this: (a) legal factors, (b) cultural differences, (c) business strategies, (d) organizational structure, and (e) the selection of people. We believe that these four case studies contribute to our knowledge of the reasons why Chinese outward FDI fails, and that it offers guidance to the management of Chinese firms wishing to invest in Europe.

Original languageEnglish
Pages (from-to)31-43
Number of pages13
JournalGlobal Business and Organizational Excellence
Volume40
Issue number1
DOIs
StatePublished - 1 Nov 2020
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Organizational Behavior and Human Resource Management

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