Author(s)

Chen Qiqi, Shi Xuanya and Du Yifei

Corresponding Author

Du Yifei

Abstract

In the face of “liability of outsidership”, proper embeddedness way is crucial for CMNEs to break down potential market barriers and integrate into the host country market environment. Based on the network embeddedness perspective, this paper takes a case study of Changhong’s overseas expansion in the United States, Indonesia and Europe, analyzing the impact of structural embeddedness and relationship embeddedness on the overseas expansion of CMNEs and looking for the general model embedded in overseas markets. The research finds the following points. Firstly, under the condition of owning certain advantage, the structural embeddedness method can promote overseas expansion relatively quickly. Secondly, relationship embeddedness is a necessary condition for CMNEs to overcome the “liability of outsidership” and achieve continuous expansion. Thirdly, what structural embeddedness and relationship embeddedness are used concertedly can achieve the balance between business development and relationship maintenance accomplishing the virtuous circle of overseas expansion. This paper reveals the impact of network embeddedness on the overseas expansion of CMNEs and summarizes the general model of network embeddedness which can provide theoretical guidance for the overseas expansion of other Chinese companies.

Keywords

Overseas Expansion; CMNEs; Structural Embeddedness; Relationship Embeddedness; Social Network