The International Business Strategy of Chinese MNCs : How Chinese large private MNCs develop their international business strategy to achieve competitive advantages in culturally different markets

Abstract: Background: Influenced by internationalization, more MNCs are seeking business opportunities in global markets, including Chinese MNCs. Under such circumstances, the authors find the research topic relating the international business strategies of Chinese MNCs. However, regarding the different situations existing between Chinese state-owned MNCs and large private MNCs, this research will be mainly focused on Chinese large private MNCs. Research questions: Main research question: How do large Chinese private MNCs develop their international business strategy to achieve competitive advantages in culturally different markets? Sub-question 1: How do Chinese MNCs deal with cultural distance in global markets? Sub-question 2: How do Chinese MNCs take advantage of resources and capabilities to achieve competitive advantages in global markets? Purpose: The purpose of this thesis is to identify cultural distances that affect Chinese MNCs’ business strategies in international markets, and also to discuss the utilization of resources and capabilities in Chinese MNCs’ strategies formulation. Finally, provide some recommendations for Chinese MNCs’ managers to initiate successfully international expansions. Methodology: The authors adopt abductive approach, qualitative method with semi-structured interviews in single case study in this thesis. Conclusions: The conclusion of this thesis includes two main points, one hand, standardized strategies are needed for Chinese MNCs to gain competitive advantages in international business; on the other hand, facing culturally different markets, some distinguished strategies are required to adapt to cultural differences and to take advantage of local resources and capabilities.