A Study On The Internationalization Of Chinese Small-and Medium-Sized Enterprises

Chinese small- and medium-sized enterprises (SMEs) have made a great progress since the reform and opening policy was adopted by the Chinese government, and their contribution to the national economy has become more and more indispensable. It can be said that no SMEs, no real developments of China's economy.With the further development of economic globalization, domestic markets become part of world market gradually, and SMEs have to be confronted with internationalization. In view of SMEs' lack of competitiveness and experiences for international operation, is it necessary for SMEs to go to international market and conduct foreign direct investment (FDI)? What is the basis to SMEs' FDI? During the operation of FDI, how to select proper strategies in order to implement their advantages and avoid disadvantages? And what's the role of the government? All these questions are to be solved by those SMEs preparing to conduct FDI. This dissertation is based on the development of FDI by Chinese SMEs and focuses on the theory and business operation of FDI by Chinese SMEs. The main work is as follows:1. To analyze the general conditions for and existing problems of FDI by Chinese SMEs. The developments of FDI by Chinese SMEs are closely related to the Economic Reform and "Going-Outward" strategy. Now, the FDI by Chinese SMEs remains at the first step, but has a splendid perspective and great potential. In addition, this dissertation throws some lights on FDI by private sectors in China.2. To research the theory of FDI by SMEs brought forward by overseas and domestic scholars. The theories by overseas scholars can be divided into four part: (1) theories concerning SMEs' existence; (2) theories on SMEs relative advantages on internationalization; (3) stage theories; and (4) "Knowledge Economy Competitiveness" theory. Besides, this dissertation summarizes the latest theories put forward by domestic researchers, which include multinationals operational advantages transformation theory, SMEs group theory and SMEs net theory. In general, the theories of FDI by SMEs are subject to further developments.3. To analyze the basis of FDI by Chinese SMEs. Nowadays, it is necessary for SMEs to conduct FDI, particularly after China's entry into the World Trade Organization (WTO). The basis of FDI by Chinese SMEs lies in two aspects: one is the SMEs' advantages; the other is a comparatively advantageous environment. In view of the obstacles to Chinese SMEs' FDI and the lack of experiences, there must be lots of problems in the course of international operations. Therefore SMEs' FDI needs not only the efforts of SMEs themselves but also the supports of the governments.4. To research the FDI strategies of Chinese SMEs. First, this dissertation concentrates on the internationalization strategies of SMEs, including "Step-by-Step" and "Leaping" strategies, and inward and outward internationalization strategies. Second, the SMEs business alliance strategies are discussed, including "Following" strategy, "Joining" strategy and "Group" strategy. Finally, this dissertation brings out three strategies concerning the brand management during FDI: Original Equipment Manufacturing (OEM) brand strategy, mixed brand strategy and shared brand strategy.5. To bring forward the government policy advice. On the basis of the discussion on the necessity of government supports for FDI by SMEs, this dissertation reviewsthe experiences of foreign government's supports for SMEs, and gives some advice concerning the organization setting, investment facilitation, service reinforcement and risk reduction.This research is expected to enrich the theory of FDI by SMEs to some extent, and advance the decision-making of SMEs to rationality, and may also serve as a reference for government's police-making to support the FDI by Chinese SMEs.