Abstract views : 86 ; PDF downloads : 26

Main Article Content

Yongjian Bao
Eden Yin

Abstract

More and more Chinese firms are pursuing internationalization strategies. However, most of them have not managed to succeed in the global markets. One possible reason for such failure is their lack of a proper global mindset. This study investigates the following three issues: first, how global minded Chinese firms are; second, what the critical drivers for their global mindedness are; third, what strategic orientation these Chinese firms adopt when they pursue internationalization strategies and how their global mindedness is related to their performance. Results indicate that first, the current level of global mindedness of most Chinese firms are fairly low. Second, experience with foreign culture, leadership vision and firm capacity are important determinants of a firm’s global mindedness. Third, global minded Chinese firms tend to pursue aggressive and risky internationalization strategies and they generally perform better than those with low level of global mindedness.

Keywords:
global mindset, internationalization strategy, emerging markets

Article Details

How to Cite
Bao, Y., & Yin, E. (2020). Global mindset and the performance of Chinese firms. Frontiers in Management and Business, 1(1), 24-39. https://doi.org/10.25082/FMB.2020.01.005
Section
Research Article

References

[1] Levy O, Beechler S, Taylor S, et al. What we talk about when we talk about ’global mindset’: managerial cognition in multinational corporations. Journal of International Business Studies, 2007, 38(2): 231-258. https://doi.org/10.1057/palgrave.jibs.8400265
[2] Srinivas KM. Globalization of business and the third world: challenge of expanding the mindsets. Journal of Management Development, 1995, 14(3): 26-49. https://doi.org/10.1108/02621719510078957
[3] Arora A, Jaju A, Kefalas AG, et al. An exploratory analysis of global managerial mindsets: a case of U.S. textile and apparel industry. Journal of International Management, 2004, 10: 393-411. https://doi.org/10.1016/j.intman.2004.05.001
[4] Bowen DE and Inkpen AC. Exploring the role of “global mindset” in leading change in international contexts. The Journal of Applied Behavioral Science, 2009, 45(2): 239- 260. https://doi.org/10.1177/0021886309334149
[5] Lovvorn AS and Chen JS. Developing a global mindset: the relationship between an international assignment and cultural intelligence. International Journal of Business and Social Science, 2011, 2(9): 275-283.
[6] Story JSP and Barbuto JEJr. Global mindset: a construct clarification and framework. Journal of Leadership & Organizational Studies, 2011, 18(3): 377-384. https://doi.org/10.1177/1548051811404421
[7] Gaffney H, Cooper D, Kedia B, et al. Institutional transitions, global mindset, and EMNE internationalization. European Management Journal, 2014, 32: 383-391. https://doi.org/10.1016/j.emj.2013.08.001
[8] Dichtl E, Koeglmayr HG and Mueller S. International orientation as a precondition for export success. Journal of International Business Studies, 1990, 21(1): 23-40. https://doi.org/10.1057/palgrave.jibs.8490325
[9] Gupta A and Govindarajan V. Cultivating a global mindset. Academy of Management Executive, 2002, 16(1): 116-126. https://doi.org/10.5465/ame.2002.6640211
[10] Holzmuller HH and Kasper H. The decision-maker and export activity: a cross national comparison of the foreign orientation of Austrian managers. Management International Review, 1990, 30: 217-230.
[11] Nummela N, Saarenketo S and Puumalainen K. A global mindset - a prerequisite for successful internationalization? Canadian Journal of Administrative Sciences, 2004, 21(1): 51-64. https://doi.org/10.1111/j.1936-4490.2004.tb00322.x
[12] Beechler S and Javidan M. Leading with a global mindset. Advances in International Management, 2007, 19: 131-169. https://doi.org/10.1016/S1571-5027(07)19006-9
[13] Harvey M and Novicevic MM. The impact of hypercompetitive “timescapes” on the development of a global mindset. Management Decision, 2001, 39(6): 448-460. https://doi.org/10.1108/EUM0000000005563
[14] JavidanMand Bowen D. The ‘global mindset’ of managers: what it is, why it matters, and how to develop it. Organizational Dynamics, 2013, 42: 145-155. https://doi.org/10.1016/j.orgdyn.2013.03.008
[15] Kedia BL and Mukherji A. Global managers: developing a mindset for global competitiveness. Journal of World Business, 1999, 34(3): 230-251. https://doi.org/10.1016/S1090-9516(99)00017-6
[16] Kyvik O, SarisW, Bonet E, et al. The internationalization of small firms: the relationship between the global mindset and firms’ internationalization behavior. Journal of International Entrepreneurship, 2013, 11(2): 172-195. https://doi.org/10.1007/s10843-013-0105-1
[17] Paul H. Creating a mindset. Thunderbird International Business Review, 2000, 42(2): 187-200. https://doi.org/10.1002/1520-6874(200003/04)42:2h187:: AID-TIE4i3.0.CO;2-7
[18] Dunning JH. Trade, location of economic activity and the MNE: A search for an eclectic approach. In The International Allocation of Economic Activity, ed. B. Ohlin, P.O. Hesselborn, and P.M. Wijkman. London: Macmillan. 1977. https://doi.org/10.1007/978-1-349-03196-2 38
[19] Johanson J and Vahlne JE. The internationalization process of the firm-A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 1977, 8(1): 23-32. https://doi.org/10.1057/palgrave.jibs.8490676
[20] PengMW,Wang DY and Jiang Y. An institution-based view of international business strategy: A focus on emerging economie. Journal of International Business Studies, 2008, 39: 920-936. https://doi.org/10.1057/palgrave.jibs.8400377
[21] Kedia B, Gaffney N and Clampit J. EMNEs and knowledgeseeking FDI. Management International Review, 2012, 52(2): 155-174. https://doi.org/10.1007/s11575-012-0132-5
[22] Luo Y and Rui H. An ambidexterity perspective toward multinational emperies from emerging economies. Academy of Management Perspectives, 2009, 49-70. https://doi.org/10.5465/amp.23.4.49
[23] Kefalas AG and Weatherly EW. Global mindsets: an exploratory study. Paper presented at the Annual Conference of the Academy of International Business, Monterrey, Mexico, 1998.
[24] Rhinesmith SH. Global mindsets for global managers. Training and Development, 1992, 63-68.
[25] Murtha TP, Lenway PA and Bagozzi RP. Global mind-sets and cognitive shift in a complex multinational corporation. Strategic Management Journal, 1998, 19(2): 97-114. https://doi.org/10.1002/(SICI)1097-0266(199802)19:2h97:: AID-SMJ943i3.0.CO;2-2
[26] Barney JB. Organizational culture: can it be a source of sustained competitive advantage?,Academy of Management Review, 1986, 11(3): 656-665. https://doi.org/10.5465/amr.1986.4306261
[27] Chatterjee S. Weaving the threads of a global mindset in work organizations: managerial roles and responsibilities. Journal of Human Values, 2005, 11(1): 37-47. https://doi.org/10.1177/097168580401100104
[28] Bartlett CK and Ghosal S. Managing across borders: the transnational solution. Boston, MA: The Harvard Business School Press. 1989.
[29] Carr CH. Are German, Japanese and Anglo-Saxon strategic decision styles will divergent in the content of globalization? Journal of management Studies, 2005, 42(6): 1155- 1188. https://doi.org/10.1111/j.1467-6486.2005.00537.x
[30] Prahalad CK and Doz YL. The multinational mission: balancing local demands and global vision. New York: The Free Press. 1987.
[31] Gregersen HB, Morison AJ and Black JS. Developing leaders for the global frontier. Sloan Management Review, 1998, 40(1): 21-32.
[32] Harveston PD, Kedia BL and Davis PS. Internationalization of born global and gradual globalizing firms: the impact of the manager. Advances in Competitiveness Research, 2000, 8(1): 92-99.
[33] Knight GA. Entrepreneurship and strategy in the international SME. Journal of International Management, 2001, 7(3): 155-172. https://doi.org/10.1016/S1075-4253(01)00042-4
[34] Adler NJ and Bartholomew S. Managing globally competent people. Academy of Management Executive, 1992, 6(3): 52-65. https://doi.org/10.5465/ame.1992.4274189
[35] Conner J. Developing the global leaders of tomorrow. Human Resource Management, 2000, 39(2): 147-57. https://doi.org/10.1002/1099-050X(200022/23)39: 2/3h147::AID-HRM5i3.0.CO;2-T
[36] McCall MW and Hollenbeck GP. Developing global executives. Boston: Harvard Business School Press. 2002.
[37] Das G. Local memoirs of a global manager. Harvard Business Review, 1993, 71(2): 38-47.
[38] Maisonrouge JG. The education of a modern international manager. Journal of International Business Studies, 1983, 13: 141-46. https://doi.org/10.1057/palgrave.jibs.8490512
[39] Hofstede G. Cultures and Organizations. London: McGraw- Hill Book. 1991.
[40] Black JS, Gregersen HB, Mendenhall,ME, et al. Globalizing people through international assignments. New York: Addison-Wesley Longman. 1999.
[41] Osland JS. The quest for transformation: the process of global leadership development. In M.E. Mendenhall, T.M. Kuhlman, and G. K. Stahl (Ed.), Developing global leaders: policies, processes, and innovations: 119-135. Westport, CT: Quorum Books. 2001.
[42] Efrat K and Shoham A. The interaction between environment and strategic orientation in born globals’ choice of entry mode. International Marketing Review, 2013, 30(6): 536-558. https://doi.org/10.1108/IMR-10-2012-0171
[43] Liang X, Musteen M and Datta DK. Strategic orientation and the choice of foreign market entry mode: an empirical examination. Management International Review, 2009, 49: 269-290. https://doi.org/10.1007/s11575-009-0143-z
[44] Miles RE and Snow CC. Organizational strategy, structure and process(eds), New York: McGraw-Hill. 1978.
[45] Miller D and Droge C. Psychological and traditional determinants of structure. Administrative Science Quarterly, 1986, 31(4): 539-560. https://doi.org/10.2307/2392963
[46] Porter ME. Competitive strategy, New York: Free Press. 1980.
[47] Miles RE, Snow CC, Meyer AD, et al. Organizational strategy, structure and process. Academy of Management Review, 1978, 3(3): 546-562. https://doi.org/10.5465/amr.1978.4305755
[48] Boyd BK and Salamin A. Strategic reward systems: a contingency model of pay system design. Strategic Management Journal, 2001, 2(8): 777-792. https://doi.org/10.1002/smj.170
[49] Luo Y and Tung RI. International expansion of emerging market enterprises: a springboard perspective. Journal of International Business Studies, 2007, 38: 481-498. https://doi.org/10.1057/palgrave.jibs.8400275
[50] Subramaniam M and Venkatraman N. Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge. Strategy Management Journal, 2002, 22: 359- 378. https://doi.org/10.1002/smj.163
[51] O’Grady S and Lane HW. The psychic distance paradox. Journal of International Business Studies, 1996, 27(2): 309- 333. https://doi.org/10.1057/palgrave.jibs.8490137