The Internationalization of Chinese Family Enterprises and Dunning's Eclectic MNE Paradigm

Abstract

This paper applies Dunning's eclectic paradigm of Ownership, Location and Internalization (OLI) advantages to the international activity and performance dynamics of the Chinese family enterprise (CFE). Through the lens of Dunning's paradigm, we trace the role of cultural and economic factors in the success of this important form of organization. In demonstrating the relevance of a theory that originated in the analysis of Western multinational firms to this indigenous Chinese type of firm, the paper supports the larger effort to expand the scope of received theory to include Chinese as well as other non-Western forms of organization.