Internationalisation motives, risks attitudes and entry modes: a comparison study of Chinese mining SOEs and NSOEs

Purpose: The aim of our research is to facilitate a better understanding of the causes, motivations and implications of the internationalisation of State-owned enterprises (SOEs) and Non-state-owned enterprises (NSOEs) from China's mining sector. Originality: By drawing on distinctions between SOEs and NSOEs, we seek to make a contribution to the emerging literature on Chinese outward foreign direct investment (OFDI). We argue that logical extensions to established internationalisation theories and concepts can be made to Chinese mining OFDI, with the value being to highlight potential qualifications or consistencies with existing paradigms. Key literature/theoretical perspective: The extant literature implies that institutional support may shape the motivations of both firms. The institutional-based view asserts that the strategies behind a firm's OFDI decisions is affected by 'the rules of the game' – namely, the host country institutions. It is argued that institutional theory is the most useful approach when studying business strategy in emerging economies. The theory can assist in explaining the distinctiveness in the behavior of outward investing from Chinese mining firms, since the 'home' institutional environment is formally and informally enforced by government and its agents, and which bears upon the norms and cognitions that influence investment behaviour.