Dimensions of knowledge: Comparing Asian and Western MNEs in China

Research output: Contribution to journalArticle

55 Citations (Scopus)

Abstract

This study compares knowledge and its performance effects between Asian and Western MNEs in the People's Republic of China. It examines knowledge differences along four dimensions including technological skills, organizational capabilities, marketing knowledge, and environment familiarity between two groups. The discriminant analysis of the survey data containing 178 MNE subunits in China suggests that Asian MNEs are inferior in technological and organizational competencies but superior in host country-specific knowledge such as marketing tactics and environmental familiarity, compared to Western counterparts. Despite such differences, knowledge in all four dimensions is found to enhance financial returns and overall performance for sample firms no matter where they come from. The logic underlying the dominance of Asian MNEs in China's FDI, from economic, cultural, and institutional perspectives, is also highlighted.

Original languageEnglish (US)
Pages (from-to)75-93
Number of pages19
JournalAsia Pacific Journal of Management
Volume16
Issue number1
StatePublished - 1999
Externally publishedYes

Fingerprint

Multinational enterprises
Asia
China
Familiarity
Marketing
Organizational capabilities
Tactics
Competency
Cultural economics
Financial returns
Host country
Discriminant analysis
Logic
Institutional perspective
Survey data

ASJC Scopus subject areas

  • Strategy and Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Business and International Management

Cite this

Dimensions of knowledge : Comparing Asian and Western MNEs in China. / Luo, Yadong.

In: Asia Pacific Journal of Management, Vol. 16, No. 1, 1999, p. 75-93.

Research output: Contribution to journalArticle

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