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The internationalisation of mainland Chinese firms into Malaysia : from obligated embeddedness to active embeddedness

Die Internationalisierung chinesischer Unternehmen vom Festland in Malaysia : von verpflichteter Einbettung zu aktiver Einbettung
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Lim, Guanie

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Abstract "This paper examines the rationale by which mainland Chinese firms choose their coalition partners in their Malaysian ventures. I explore how, under certain political economic conditions, such cross-border investment and corporate tie-ups can be shaped to meet the Malaysian state's objectives. I argue that the Malaysian state has enjoyed success in the construction sector by nurturing cooperation between its carefully groomed government-linked companies and mainland Chinese firms. Government-linked companies are useful coalition partners for the mainland Chinese firms because of the crucial role the state plays in creating a largely non-competitive industry that favours government-linked companies. Outside of the construction sector, however, the state has enjoyed markedly less success in fostering cooperation between the mainland Chinese firms and the government-linked companies. Consequently, the mainland Chinese firms possess more bargaining power vis-à-vis the state when they invest in these sectors, enjoying considerable autonomy in the selection of their coalition partners." (author's abstract)
Keywords enterprise; China; Malaysia; intercompany cooperation; foreign investment; economic policy; Far East; developing country; Southeast Asia; Asia
Classification Sociology of Developing Countries, Developmental Sociology; Sociology of Economics
Document language English
Publication Year 2014
Page/Pages p. 59-90
Journal Journal of Current Southeast Asian Affairs, 33 (2014) 2
ISSN 1868-1034
Status Published Version; peer reviewed
Licence Creative Commons - Attribution-NoDerivs