With the rapid growth of outward foreign direct investment (OFDI) by Chinese enterprises, relevant research on Chinese multinational enterprises (MNEs) has attracted great attention. Prior studies mainly focus on international activities and mechanisms unique to Chinese enterprises that differ from those in Japan, the United tates, and Europe that are aimed at manufacturers but do not involve retailers. This study focuses on the multinationalization of retailers through overseas stores and attempts to clarify how Chinese multinational retailers (MNRs) differ from Japanese MNRs by conducting a questionnaire and discerning patterns in the multinationalization of Chinese retailers from a case study.
The findings establish clearly that Chinese MNRs have the following unique characteristics. First the findings reveal that the overseas entry methods of Chinese MNRs are mostly merger and acquisition (M&A) rather than wholly owned subsidiaries. This is influenced by the Chinese government’s promotion of overseas investment policy more than by the invitation of host countries. The motive for expansion is the diversification of business rather than the expansion of the existing retail system overseas. The chief problems faced in operations relate to talent rather than the rise in rents or conflicts with partners. The case study has revealed that Chinese MNRs have used asset-exploiting, asset-augmenting, and created asset-seeking strategic models depending on the host country.