Dr. Sunny Li Sun

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- Usefulness of the research to the topic:

By orderly answering 3 propositions above, the research paper has beneficially contributed to our understanding of this topic in 3 ways: unique perspective, advanced knowledge, identified variables. Firstly, in terms of providing readers with a refreshing point of view from the theoretical framework only, the paper itself attached IB research and case study of Huawei through the RVB to acknowledge that theoretical and actual framework has the correlative relationship. Secondly, the paper is advantageous to practitioners with regard to its advanced knowledge related to internationalization. The information provided by the research helps avid readers as well as future businesspeople to come up with the most effective ways to boost the efficiency with view to gaining competitive advantages over DEs during market penetration. Furthermore, this study has enriched the knowledge of important strategy design variables.

- Limitations of the research:

Every cases should be analyzed in both qualitative and quantitative aspect to get rid of the “bias” and ingrained perception. Even though Huawei is regarded as one of the most suitable enterprises to illustrate the success of MNEs, researchers may easily fall into the trap of creating an “ideal” viewpoint, in which there is a lack of counter-argument to find out not only confirmation but also dis-confirmation as well as extension of the given proposition. As a motto of every businessperson: “There is no development without competition” which can apply to this case interpretation. While qualitative case provides a general view onto the study, quantitative case could offer practitioners with a more objective, open-minded way of thinking. In order to gain the best result of the study, it is advisable for researchers in the future to analyze more cases from different facets to bring about the best result for the study.

- Conclusion:

After going in-depth of the case related to the internationalization path of Huawei, scholars could come up the solution to those 3 propositions listed in the beginning. Firstly, with regard to the root of MNEs’ competitive advantages, MNEs has built up a strategy to reinforce its base as well as gain market awareness in its domestic market before internationalizing. Secondly, there has been many constraints in foreign market: “psychic distance”, economic distance, … However, to overcome the difficulties, Huawei takes a cautious step to enter small markets with less institutional barriers to get accustomed to the foreignness at first. Finally, chances are high that market places still exist for latecomer MNEs if they can apply tactfully linkages to complement strengths and neutralize weaknesses. To conclude, Huawei’s experience has proved to be the great lessons not only for enterprises who have the tendency to enter emerging economies but also for scholars who are examining this topic.

Citations:

Xiaoyan Luo , , Michał K. Lemański , (2016), FDI Strategies of Chinese Companies in the Electronics Industry: Motives, Locations, and Entry Mode Choices, in Rob Van Tulder , Alain Verbeke , Jorge Carneiro , Maria Alejandra Gonzalez-Perez (ed.) The Challenge of Bric Multinationals (Progress in International Business Research, Volume 11) Emerald Group Publishing Limited, pp.589 – 628

Đạt, T. (2017, 08 25). Vietnamnet. Retrieved 08 25, 2017, from Vietnamnet: http://vietnamnet.vn/vn/cong-nghe/tin-cong-nghe/huawei-dau-tu-tong-cong-230-trieu-usd-vao-thi-truong-viet-nam-395080.html