With my cumulative dissertation project, I aim to explore the co-evolution between home-country policies related to outward foreign direct investment (OFDI) and the activities of multinational enterprises (MNEs) in the context of China. Motivated by the unique relationship between the state’s interventionist approach and the development of its firms to become globally competitive MNEs, this thesis analyses the influence that policymakers have on MNEs and vice versa, within a co-evolution framework.
Where the current International Business literature studies policy types (for example regulatory or normative) and their effect on MNEs individually, I enhance this approach by covering multiple types of policies in one analysis. Thus, I aim to establish a wider understanding of the role that policies have in the context of China regarding MNEs’ internationalization. Moreover, I aim at deepening the understanding of how Chinese MNEs can influence policymakers in their home country. Next, to the direct measures of CPA, I also include the internationalization activities of MNEs into this analysis. Hereby, I argue that policymakers are observing and adopting policies accordingly to realign unwanted investment developments. This approach is new to International Business research. Finally, I connect both analyses through a co-evolutionary study wherein the interrelated relationship between the evolution of the MNE, and the evolution of home country policies is analyzed.