International Distribution Management of Firms from Emerging Markets – Case Study Research of Chinese Firms

In the last two decades, outward foreign direct investment from developing and transition economies has been growing rapidly, and new multinational enterprises from these economies have started to compete on the world stage. However, these firms are facing formidable challenges due to their special characteristics and weaknesses. Today firms compete not only in terms of products but also in terms of supply chains, and the lack of comprehensive distribution networks is one of the main problems in the internationalization of these new multinational enterprises. This thesis presents a study which finds answers to the question ``how can new multinational enterprises set up efficient international distribution logistics systems when they enter developed markets''. The domain of this study touches the existing research gap in management research on emerging economies. The study examines Chinese firms entering developed markets and provides an overall view of the development and characteristics of Chinese firms' internationalization and first-hand information about their international distribution management. The study uses resource-based view and market-based view as explanatory theories and develops a model of efficient international distribution logistics systems for new multinational enterprises entering developed markets with foreign direct investment activities. The model suggests important resources for increasing the efficiency of international distribution logistics systems. Based on the result of the study, a number of managerial recommendations are provided both for Chinese firms who have entered developed markets or are planning their internationalization to such a market, and for logistics service providers who are planning to cooperate with such firms.