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Knowledge, Organization, and ManagementBuilding on the Work of Max Boisot$
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John Child and Martin Ihrig

Print publication date: 2013

Print ISBN-13: 9780199669165

Published to Oxford Scholarship Online: September 2013

DOI: 10.1093/acprof:oso/9780199669165.001.0001

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Writing with Max Boisot

Writing with Max Boisot

(p.212) (p.213) 14 Writing with Max Boisot
Knowledge, Organization, and Management

Marshall Meyer

Oxford University Press

This chapter reflects on Boisot and Meyer’s 2008 article on the internationalization of Chinese firms. The article argued that while received internationalization theory suggests that larger firms in more consolidated industries will be first to go out, the reverse may be true in China. Meyer believes that Boisot’s basic intuition was correct: many Chinese firms internationalize because of high transaction costs or nearly insuperable obstacles to doing business at home. At the same time, he admits that the article’s supporting arguments now require some revision. In this reflection, he extends the analysis to take account of further push and pull factors. The push factors include the opportunity for Chinese brands to enter overseas markets as low-cost producers and the incentive to do so in the light of foreign competition in China’s urban markets. A major pull factor deserving more attention is the attraction of Western institutions for Chinese firms.

Keywords:   Max Boisot, internationalization, China, transaction costs, Chinese brands, overseas markets, low-cost producers, foreign competition, Western institutions

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