Learning Motivations for Chinese Unconventional FDI to Learn Innovativeness

Abstract

This study focuses on the new motivation of Chinese outward foreign direct investment (FDI) toward developed countries by differentiating from previous studies on learning capabilities focused on external resources such as new knowledge and technology. In order to achieve success in competitive markets, Chinese firms are now more motivated to create their own values internally and to escape from being as copycat by learning a new innovative organizational culture. Throughout the Tencent case, investing on gaming industry by buying other game firms provides how this Chinese company is learning new corporate culture. Tencent could create their own values through two approaches. First way would be acquiring other gaming firms from culturally close to highly proximate culture, and second approach is from low level to higher level acquisition.