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The Exporting Trading Companies from China: An Institution-based View
International Business: New Challenges, New Forms, New Perspectives
Swansea University Author: Jia Li
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DOI (Published version): 10.1057/9781137007742_7
Exporting is the foreign market entry mode most commonly adopted by firms in order to grow and develop in international markets, thanks to its lower costs, risks, and resource commitment. The existing studies in this field look at a range of issues from export-related barriers and strategies, to det...
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Exporting is the foreign market entry mode most commonly adopted by firms in order to grow and develop in international markets, thanks to its lower costs, risks, and resource commitment. The existing studies in this field look at a range of issues from export-related barriers and strategies, to determinants of performance (Katsikeas et al., 2009). There is also complementary literature on: import-related stimuli (Katsikeas, 1998); importing problems (Katsikeas and Dalgic, 1995); relationships between the export and importer (Leonidou and Kaleka, 1998); and international and global purchasing activities (Leonidou, 1999). Being the ‘merchant’ between domestic manufacturers and foreign buyers, trading companies play a significant role in global business (Jones, 1998), supporting manufacturers’ exports (Peng and Ilinitch, 1998) and purchasing companies’ imports (Quintens, Matthyssens and Faes, 2005). The study of trading companies remains underdeveloped (Jones, 2000; Peng et al., 1998); in particular, the study of trading companies based in transition economies. The differences, in exporters’ characteristics and in the exporting channel from developed and developing countries (Das, 1994; Tesfom et al., 2004), plus the heterogeneity of trading companies logically suggests to a new trial of trading companies from one emerging economy, like China, which has the reputation of a distinct business mode and environment.
China, exporting Trading Companies, institutional theory, transaction costs economics
Faculty of Humanities and Social Sciences