AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
This paper examines how the Hyundai Motor Company (HMC) became a global automaker through its Foreign
Direct Investment (FDI) experience in India. HMC outperformed its competition through its rapid and aggressive
expansion into foreign markets to become a major global automaker in a short period of time despite its limited
international experience. We study HMC's previous FDI strategies and practices and examine how the lessons
learned from its failed investment in Canada enabled it to overcome the challenges of establishing its operations
in India. This paper also analyzes the reasons for HMC's success in India and how its experience can be imitated
by other companies whose home countries are at a similar stage of development as that of Korea's or at the
emerging market status. HMC's approach to the Indian market can be dubbed as a "Queen Bee" colonization
strategy. The practical implications of HMC's FDI strategy are also discussed. (For more information, please
contact: Hyeong-Deug Kim, Simon Fraser University, Canada: hdkim@sfu.ca)
Perspectives on Chinese Foreign Direct Investment in Australia
Robert Graham Jack, Macquarie University
Lijun Qin, Macquarie University
Monica Ren, Macquarie University
The sheer size and scale of China's internationalisation, and its significance for Australia's future trade and
investment relations, encourages analysis of its overseas investment modes and strategies. By employing an
exploratory, multiple case study methodology, across a diverse range of Chinese manufacturers in the
Australian market, we seek to contribute to the literature on firm internationalisation from emerging markets as
well as enhancing our understanding of firm strategies from one of Australia's most important trading partners.
Four key research questions, drawn from an overview of the relevant literature, are presented. These questions
focus on the reasons why Chinese firms target the Australian market; their choice of entry mode, and the value
creating activities they locate in Australia. Among the key findings from our research is the use of the
Australian market by Chinese firms for new product testing and the ongoing challenges these firms face in
building brand preference for their products. (For more information, please contact: Robert Graham Jack,
Macquarie University, Australia: rob.jack@mq.edu.au)
Are Mining Firms Just Internationalizing for Natural Resources The Motives of Chinese Mining SOEs and POEs
Monica Ren, Macquarie University
Robert Graham Jack, Macquarie University
We present six comparative case studies detailing the outward foreign direct investments (OFDI) of three
Chinese mining state-owned enterprises (SOEs) and three private-owned enterprises (POEs) to examine their
motives for internationalization. Case studies indicated that their motives fulfill multiple aims and are multidimensional.
Both mining SOEs and POEs have unique ‘domestic comparative ownership advantages'. While the
SOEs internationalize to exploit competitive advantages, the POEs move abroad to redress competitive
disadvantages. This exploratory study suggests that POEs are not yet internationalizing to gain global
competitiveness, but to sustain or improve their existing positions in the Chinese mining industry. (For more
information, please contact: Robert Graham Jack, Macquarie University, Australia: rob.jack@mq.edu.au)
Foreign Acquisitions by Emerging Country Multinationals: Asset Exploitation or Asset Augmentation
Surender Munjal, University of Leeds and University of Delhi
Peter Buckley, University of Leeds
Nicolas Forsans, University of Leeds
Peter Enderwick, Auckland Technical university
Since the last decade, we witnessed a rise in the internationalisation of multinationals enterprises from the
emerging markets (EMNEs). The traditional perspective of internationalisation puts forward asset exploitation as
prime driver for internationalization. However, asset augmentation was further acknowledged as a determinant
AIB 2012 Conference Proceedings
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