International expansion strategy of firms in China: An empirical study on information technology industry

Abstract

In recent years, IT firms in emerging market countries have begun to undertake direct investments abroad. According to incremental internationalization theory, experience prompts internationalized investments. This article employs data of Chinese listed companies to verify the above theory. Besides, what we conclude is that internationalization experience of senior executives will counterbalance deficiency of enterprise's foreign investment experience; while firm's capability of managing risks will prompt internationalization.