Administrative Distance Primacy in Huawei's Strategic Adaptation across Contrasting Markets
DOI:
https://doi.org/10.71222/dqgkkm29Keywords:
foreign operation modes, institutional distance, international joint ventures, foreign direct investment, emerging market MNEs, Uppsala modelAbstract
This study examines how institutional distance influences multinational enterprises’ (MNEs) selection of foreign operation modes. We conduct a comparative analysis of Huawei’s international expansion strategies in Russia and Japan. Drawing on institutional theory and the Uppsala internationalization model, we analyze Huawei’s different foreign operation modes: international joint ventures (IJVs) in Russia and foreign direct investment (FDI) with licensing in Japan. Our findings reveal that cultural-administrative distance significantly influences operation mode choices, with higher institutional distance favoring collaborative modes while lower distance enables more committed modes. The study contributes to international business literature by providing empirical evidence on how Chinese MNEs navigate institutional distances during internationalization. It also offers practical insights for emerging market MNEs pursuing global expansion strategies.
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