Research using Huawei and Tata Motors as

 

 

 

 

 

 

 

Research Methodology (LBPG5018) Assignment-2  2017/18

 

A Comparative Study of the Motivation and
Approach to Internationalization of Chinese and Indian Companies: A Case Study
of Huawei and Tata Motors

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                                               MODULE
LEADER: Dr JILLIAN YEOW

 

                                                SUBMITTED BY: SARAH ALSANAD, P17222895

                                                                            

 

 

 

 

 

 

 

 

 

 

TABLE
OF CONTENT

 
ABSTRACT. 3
1.0      INRODUCTION.. 4
1.1      Rationale of
Study. 4
1.2      Research Aim.. 5
1.3      Research
Objectives. 5
1.4      Research
Questions. 5
2.0      LITERATURE
REVIEW… 6
2.1      The Concept
of Internationalization. 6
2.2      Theories and
Models of Internationalization. 6
2.3      Internationalization
of Chinese and Indian Companies. 7
2.4      Summary. 7
3.0      RESEARCH
METHODOLOGY & METHOD.. 8
3.1      Research
Methodology. 8
3.2      Research
Philosophy. 8
3.3      Research
Approach.. 8
3.4      Research
Strategy. 9
3.5      Data
Collection.. 9
3.6      Summary. 9
4.0      CONCLUSION.. 10
REFERENCES.. 11
 

 

 

 

 

ABSTRACT

The aim of this
research is to compare the motivation and approach to internationalization of
Chinese and Indian Companies using Huawei and Tata Motors as case studies. The
justification of this research is based on the existence of limited literature
aimed at understanding the motives and approaches to internationalization by
firms in emerging markets and the Asian continent, via a comparison of the
internationalization process of two firms in two emerging markets within the
Asian continent. Relevant existing literature were reviewed with the aim of
understanding the motives and approaches to internationalization by Chinese and
Indian firms. While the qualitative research methodology was selected and
justified as the most appropriate methodology for this research, the
interpretivism research philosophy, the inductive research approach, and the
case study research strategy were selected to be utilized by the research.
Secondary data on the internationalization of Huawei (a Chinese firm) and Tata
Motors (an Indian firm) will be gathered and analysed in order to make findings
relevant to the aims and objectives of this research.

 

1.0  INRODUCTION

According
to Johanson & Vahlne (2009), several studies have been conducted over the
years on the process of development of international businesses. A significant
portion of these studies have pointed to the fact that the internationalization
of these businesses is a process where the businesses or firms gradually
increase their international presence and involvement. According to Chetty
& Campbell-Hunt (2004), two models that provide an explanation to these
process of internationalization are the Innovation model and the Uppsala
Internationalization Model. While both models agree with the assertion of
Johanson & Vahlne (2009) regarding the incremental process of
internationalization, the innovation model asserts that the decision of an
organisation to internationalize is similar to the adoption of an innovation on
the basis of Roger’s adoption process, which entails awareness, interest,
evaluation, trial, and adoption, while the Uppsala model asserts that as a firm
learns more about a market, their commitment to investing more resources in the
market increases.

In
assessing the process of internationalization of firms, this research seeks to
carry out a comparative study of the motivation and approach to
internationalization of Chinese and Indian companies, using Huawei and Tata
Motors as case studies. This section examines the rationale of this study, the
research aim, the research objectives, and the research questions.

 

1.1  Rationale of Study

Over
the years, several studies and research attempts have been aimed at
understanding the motivation and the approach to internationalization of firms.
One of such research by Carlos et al. (2016) was aimed at examining the impact
of inward dimensions of internationalization on two Portuguese companies
operating in different industries, which are the metallomechanics industry and
the automation engineering industry. Findings from this research by Carlos et
al. (2016) revealed that inward activities such as procurement and production,
tends to drive the internationalization of companies. In another research aimed
at understanding the internationalization process of firms, Johanson & Vahlne
(2009) recommended a model of internationalization that focused on the gradual
acquisition, integration, and utilization of knowledge relating to foreign
operations and markets, with an incremental increase in commitment to foreign
markets. Like several other research attempts and studies, the research and
findings of Johanson & Vahlne (2009) and Carlos et al. (2016) have focused
on the internationalization of firms in western or developed economies, with
limited amount of research focusing on the motivation and approach to
internationalization of firms in emerging economies. This research seeks to
fill this gap by focusing on the motivation and approach to
internationalization of firms within emerging economies.

One of
the limited amount of research on the motivation and approach to
internationalization of firms in emerging economies was conducted by Cortesi
(2011). However, like most of these research, Cortesi (2011) focused on the
motivation and approach to internationalization of Chinese firms. A major justification
for this research lies in the fact that it compares the motivation and approach
to internationalization of two firms (Huawei and Tata Motors) which have their
origin in two emerging markets (China and India). This makes it possible to
discover consistencies that may occur in the comparison of the motives and
approaches to internationalization of these two firms from two emerging
economies, while validating or invalidating the existing body of knowledge on
the motivation and approach to internationalization of firms in emerging
economies.

 

1.2  Research Aim

To
compare the motivation and approach to internationalization of Chinese and
Indian Companies using Huawei and Tata Motors as case studies.

 

1.3  Research Objectives

This
research seeks to achieve the following;

·        
To determine the motives and approach to
internationalization of Chinese Companies using Huawei as a case study.

·        
To determine the motives and approach to
internationalization of Indian Companies using Tata Motors as a case study.

·        
To compare the motives and approach to
internationalization of Chinese and Indian Companies.

 

1.4  Research Questions

 

·        
What are the motives and approach to
internationalization of Chinese Companies?

·        
What are the motives and approach to
internationalization of Indian Companies?

·        
What are the similarities and differences
between the motives and approach to internationalization of Chinese and Indian
Companies?

 

 

 

 

 

 

 

 

 

2.0  LITERATURE REVIEW

This
section seeks to assess existing literature relating to the motivation and
approach to internationalization of Chinese and Indian Companies. Therefore,
this section assesses the concept of internationalization, the theories and
models of internationalization, the internationalization of Chines companies,
the internationalization of Indian companies, and the conceptual framework for
this research.

 

2.1  The Concept of Internationalization

In
order to compare the motivation and approach to internationalization of Chinese
and Indian Companies, an understanding of the concept of internationalization is
essential. According to Knight (2015), internationalization can be defined as
the integration of an international, intercultural, or a global perspective
into the function, purpose, or delivery of a product or service. While this
definition provides an insight into what internationalization entails, the
limitation with this definition lies in its lack of simplicity and clarity on
what internationalization entails within the context of the organisations being
used as case studies in this research. The definition by Business Dictionary
(2017) provides a simpler and clearer definition of the concept of
internationalization within the context of the organizations being studies.
Business Dictionary (2017) defines internationalization as the increasing
tendency of an organization to operate across national boundaries.

 

2.2  Theories and Models of
Internationalization

In
order to assess the motivation and approach to internationalization of Chinese
and Indian Companies, an understanding of theories and models of internationalization
is essential in understanding the drivers of internationalization by firms.

One of
such theories and models is the eclectic paradigm developed by Dunning. This is
also referred to as the OLI Framework. According to Azuayi (2016), the eclectic
theory is a paradigm that assesses the motivation behind the decision of a firm
as it relates to its ownership, location, and internationalization. While the
Ownership advantages are firm-specific features that enables it exploit
opportunities in foreign countries, the Internationalization advantage are the
benefits that accrue from the firms domestic market which enables it benefit
from operating in foreign markets while saving cost in foreign market operation
(Azuayi, 2016). Location advantage, however, relates to the siting of the
investment entity in a location that offers the greatest benefit (Azuayi,
2016).

Another
relevant model to internationalization is the Uppsala model. The Uppsala model
iterates the fact that the internationalization of firms is a process that is
slow and incremental (Ribau et al., 2015). The model asserts the fact that the
internationalization process entails a transformation from a position of
limited market knowledge and uncertainty to a position of experiential learning
(Azuayi, 2016).

In
achieving the aim of this research, which is to compare the motivation and
approach to internationalization of Chinese and Indian Companies using Huawei
and Tata Motors as case studies, the internationalization of Huawei and Tata
Motors will be assessed in the light of the eclectic paradigm and the Uppsala
model.

 

2.3  Internationalization of Chinese and Indian
Companies

In
order to compare the motivation and approach to internationalization of Chinese
and Indian Companies, a review of existing literature relating to the
internationalization of Chinese and Indian companies is essential.

According
to Zhang & Filippov (2009), internationalization by Chinese firms are
mostly by strategic alliances and Mergers & Acquisitions (M). Schüler?Zhou & Schüller (2009)
agree with Zhang & Filippov (2009) on the fact that Mergers &
Acquisitions (M) is the dominant approach to internationalization of
Chinese firms, while noting that Chinese firms often seek high level of equity
participation in foreign firm that they invest in. In another research by Zheng
(2013), Cross-Border Mergers & Acquisitions were identified as the
preferred internationalization mode for Chines firms as they seek to engage
with well-known brands, larger distribution networks, better technology, and
greater management expertise.

With
respect to the internationalisation of Indian firms, Goldstein (2007) iterates
the fact that the commonly utilized approach to internationalization are
Greenfield Investment, Joint Ventures, and Mergers and Acquisitions. According
to Parthasarathy (2016), the process of internationalization of India firms
entails initially building a strong market position in a foreign market via
delivery capability. This is followed by the building of a strong brand, and then
the quest for input capabilities.

In
assessing the motivation and approach to internationalization of Chinese and
Indian Companies, these existing literature on the internationalisation of
Chinese and Indian firms will be compared using the case of Huawei (a Chinese
multinational firm) and Tata Motors (an Indian multinational company), in a bid
to identify similarities and differences in the internationalisation process of
firms in both countries.

 

2.4  Summary

In
summary, this section has assessed the concept of internationalization, the
eclectic paradigm and the Uppsala model and their relevance to this research,
as well as a review of existing literature on the internationalization of
Chinese and Indian firms.

 

 

 

3.0  RESEARCH METHODOLOGY & METHOD

The
section assesses the research methodology and method that will be employed in
achieving the aims and objectives of this research. This section assess the
research methodology, the research philosophy, the research approach, the
research strategy, and the data collection method for this research.

 

3.1  Research Methodology

In
order to compare the motivation and approach to internationalization of Chinese
and Indian Companies using Huawei and Tata Motors as case studies, the research
methodology is essential because it aids the logical and coherent integration
of several aspects of the study, while ensuring that the research objectives
are achieved.

In
this research, a qualitative research methodology will be employed by the
researcher. Findings from Alzheimer Europe (2015) suggests that a qualitative
research methodology is a methodology that entails recording, assessing, and
making decisions. The benefit of the qualitative research methodology is that
it is exploratory in nature, providing insight into underlying opinions,
assumptions, and reasons (DeFranzo, 2011). Given the exploratory nature of this
study, the qualitative research methodology is most appropriate for achieving
the research aim and objectives. On the other hand, the limitation with the
utilization of the qualitative research methodology lies in its limited
empirical analysis.

 

3.2  Research Philosophy

In
order to understand the motivation and approach to internationalization of
Chinese and Indian Companies, the interpretivism research philosophy will be
employed and utilized. The appropriateness of the interpretivism research
philosophy is based on the flexibility it offers the researcher, as well as its
usefulness in capturing meaning and making sense of what is considered as
reality (Edirisingha, 2012). Given that this research is aimed at understanding
the motives and approach to internationalization by Chinese and Indian
companies, the interpretivism research philosophy is most appropriate for
achieving this aim.

 

3.3  Research Approach

In
conducting this research, the inductive research approach will be employed and
utilized by the researcher. According to Musiyiwa (2017), the inductive
research approach is characterized by movement from specific observation to
generalization, as well as the detection of patterns. The appropriateness of
the inductive research approach for this research is lies in the fact that this
research seeks to make a generalization on the motives and approach to the
internationalization of firms in China and India, based on an assessment of the
internationalization of Huawei (a Chinese firm) and Tata Motors (an Indian
firm).

 

3.4  Research Strategy

With
respect to the research strategy for this research, the case study research
strategy will be employed. The case study research strategy is a strategy that
provides detailed contextual assessment of a limited number of events or
conditions, as well as their relationships (Alzheimer Europe, 2015). Given that
this research aims at understanding and comparing the motives and approaches to
internationalization by Chinese and Indian firms based on the
internationalization process of Huawei and Tata Motors, the case study research
strategy is most appropriate for this research.

 

3.5  Data Collection

In
carrying out this research, secondary data on Huawei and Tata Motors will be
gathers from the annual reports of both companies, their websites, journals,
and other related and relevant databases. The utilization of secondary data for
this research is justified by the fact that it provides a cost efficient and timely
approach to gathering and analysis of data.

 

3.6  Summary

In
summary, this section has assessed the research methodology, the research
philosophy, the research approach, the research strategy, and the data
collection method for this research.

 

4.0  CONCLUSION

In
summary, this research has outlined the aims and objectives of this research,
while providing a rationale for this study. Relevant existing literature were
reviewed with the aim of understanding the motives and approaches to
internationalization by Chinese and Indian firms. While the qualitative
research methodology was justified as the most appropriate methodology for this
research, the interpretivism research philosophy, the inductive research
approach, and the case study research strategy were selected to be utilized by
the research. Secondary data will be gathered and analysed in order to make
findings relevant to the aims and objectives of this research.

 

 

 

REFERENCES

 

Alzheimer Europe (2015). Research
methods. Online Alzheimer-europe.org. Available at:
http://www.alzheimer-europe.org/Research/Understanding-dementia-research/Types-of-research/Research-methods
Accessed 29 Dec. 2017.

Azuayi, R. (2016).
Internationalization Strategies for Global Companies: A Case Study of Arla
Foods, Denmark. Journal of Accounting & Marketing, 05(04).

Business Dictionary
(2017). What is internationalization? Definition and meaning.
Online BusinessDictionary.com. Available at:
http://www.businessdictionary.com/definition/internationalization.html
Accessed 29 Dec. 2017.

Carlos, A., Canedo, C. and
Pereira, R. (2016). Inward Internationalization as a Motivation to Go
International. Postgraduate. Universidade Catolica Portuguesa.

Chetty, S. and Campbell-Hunt,
C. (2004). A Strategic Approach to Internationalization: A Traditional Versus a
“Born-Global” Approach. Journal of International Marketing, 12(1).

Cortesi, E. (2011). The
Internationalization of Emerging Market Firms: Motivations and Approaches.
Università degli Studi di Bergamo. Postgraduate.

DeFranzo, S. (2011). Difference
between qualitative and quantitative research.. Online Snap Surveys Blog.
Available at:

What’s the difference between qualitative and quantitative research?


Accessed 29 Dec. 2017.

EDIRISINGHA, P. (2012). Interpretivism
and Positivism (Ontological and Epistemological Perspectives). Online
Prabash78.wordpress.com. Available at:
Interpretivism and Positivism (Ontological and Epistemological Perspectives)
Accessed 29 Dec. 2017.

Goldstein, A. (2007). The
Internationalization of Indian Companies: The Case of Tata.

Johanson and Vahlne (2009).
The Uppsala internationalization process model revisited: Form liability of
foreignness to liability of outsidership. Journal of International
Business Studies, 40(9), pp. 1-21.

Knight, J. (2015). Updated
Definition of Internationalization. International Higher Education,
(33).

Musiyiwa, Z. (2017). Research
paradigms, epistemological and ontological assumptions in research.

Parthasarathy, S., Momaya, K.
and Jha, S. (2016). Internationalization of Indian Firms: An Exploratory Study
of Two Firms from the Tyre Industry. Journal of East-West Business,
22(4), pp.324-350.

Ribau, C., Moreira, A. and
Raposo, M. (2015). Internationalisation of the firm theories: a schematic synthesis. International
Journal of Business and Globalisation, 15(4), p.528.

Schüler?Zhou, Y. and Schüller, M. (2009). The internationalization of
Chinese companies. Chinese Management Studies, 3(1), pp.25-42.

Wengrzyn, R. (2017). Internationalization
& Globalization of Businesses – Video & Lesson Transcript | Study.com.
Online Study.com. Available at:
https://study.com/academy/lesson/internationalization-globalization-of-businesses.html
Accessed 29 Dec. 2017.

Zhang, Y. and Filippov, S.
(2009). Internationalization of Chinese firms in Europe. IDEAS.

Zheng, N. (2013). The
Internationalization of Chinese Firms. PhD. University of York.

 

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