Patterns of internationalization of Chinese firms—empirical study based on strategic approach

• In this study, firstly we provide an analytical framework for international activities, which are of theoretically significant importance to research and understand the patterns of internationalization. Then, we take 500 top Chinese enterprises as study objects and analyse deeply the behaviour of their FDI (foreign direct investment) scenario from three aspects, namely motivations, entry modes and location choices. The results reveal that: (1) Chinese companies' internationalization is still at the early stage and has not reached the upstream value chain of internationalization; (2) the internationalization business of Chinese companies is diversified in destinations; (3). Chinese companies' modes of entering overseas markets are flexible and most companies have actively tried diverse entry modes with more adaptability; (4) the rapid increase of the FDI by the transnational strategic assets‐seeking companies shows that Chinese companies are inclined to protect and improve competitive advantages through obtaining new assets rather than making use of existing competitive advantages as before. Some implications of findings are also discussed finally.

Copyright © 2009 John Wiley & Sons, Ltd.