@inbook{bef273bdfcda4f228ab388ded7e1547a,
title = "State Capitalism as an Instrument of Diplomacy: The Internationalization of Chinese Firms",
abstract = "Using survey data on Chinese multinational enterprises (MNEs), we examine the effect of home-government diplomatic support on Chinese firms{\textquoteright} overseas performance. The findings indicate that the level of diplomatic support offered by the home government has a positive association with the overseas performance of Chinese MNEs. Strong political relations between China and the host country can further boost the effect of home-country diplomatic support on the subsidiary performance of these firms. Our study helps to resolve the puzzle concerning why emerging market MNEs tend to operate in countries where the political conditions are risky. State capitalism plays a key role in enabling emerging market MNEs to compete in overseas markets where strong political relations between a firm{\textquoteright}s home government and the host country are in place.",
keywords = "Chinese MNEs, diplomacy, political relations state capitalism, political relations",
author = "Xia Han and Xiaohui Liu",
year = "2022",
month = jul,
day = "28",
doi = "10.1093/oxfordhb/9780198837367.013.13",
language = "English",
isbn = "9780198837367",
series = "Oxford Handbooks",
publisher = "Oxford University Press",
pages = "306–326",
editor = "Mike Wright and {Wood }, {Geoffrey T.} and {Cuervo-Cazurra }, Alvaro and Pei Sun and {Okhmatovskiy }, Ilya and Anna Grosman",
booktitle = "The Oxford Handbook of State Capitalism and the Firm",
address = "United Kingdom",
}