Qualitative Measure of the Degree of Internationalization: The Case of Huawei

Authors

  • José Satsumi López Morales Tecnologico Nacional de México/ IT de Veracruz

DOI:

https://doi.org/10.32870/mycp.v10i29.724

Keywords:

degree of internationalization, Huawei, qualitative measure, breadth, depth

Abstract

The study of the “degree of internationalization” (DOI) is an important topic in the academic literature of international business. Therefore, the main objective of this work is to measure the DOI of the Chinese company, Huawei, from the perspective of the “depth” and “breadth” of the DOI. To achieve this objective, a qualitative content analysis technique was utilized to analyze Huawei Company’s annual reports over 14-year, from 2006 to 2019, to extract the frequency of words associated with the DOI to carry out the measurement. Huawei’s annual reports for this period were collected from the company’s institutional page. The primary results obtained indicate an increase in the DOI for Huawei in the two dimensions studied of depth and breadth. Also, these results indicate a trend similar to the number of employees and Huawei earnings in the period from 2006 to 2019.

Downloads

Download data is not yet available.

References

Abdi, M., & Aulakh, P. S. (2018). Internationalization and performance: De- gree, duration, and scale of operations. Journal of International Business Studies, 49(7), 832-857. https://doi.org/10.1057/s41267-018-0146-8

Andreu, R., Claver, E., Quer, D., & Rienda, L. (2018). Family ownership and Spanish hotels chains: An analysis of their expansión through internationa- lization. Universia.

Ang, S. H. (2007). International diversification: a “quick fix” for pressures in company performance? University of Auckland Business Review, 9(1), 17- 23.

Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124.

Annual Report. (2006). https://www.huawei.com/ucmf/groups/public/documents/annual_report/092583.pdf

Annual Report. (2007). https://www.huawei.com/ucmf/groups/public/documents/annual_report/092583.pdf

Annual Report. (2008). https://www.huawei.com/ucmf/groups/public/documents/annual_report/092581.pdf

Annual Report. (2009). https://www.huawei.com/ucmf/groups/public/documents/webasset/hw_092117.pdf

Annual Report. (2010). https://www.huawei.com/ucmf/groups/public/documents/annual_report/092576.pdf

Annual Report. (2011). https://www.huawei.com/ucmf/groups/public/documents/attachments/hw_126991.pdf

Annual Report. (2012). https://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf

Annual Report. (2013). https://www.huawei.com/ucmf/groups/public/documents/attachments/hw_u_323372.pdf

Annual Report. (2014). https://www.huawei.com/minisite/japan-annual report/2014/img/huawei_annual_report_2014_en.pdf

Annual Reports. (2015). https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annualreport2015_en.pdf

Annual Reports. (2016). https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annualreport2016_en.pdf?la=en

Annual Reports. (2017). https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annual_report2017_en.pdf

Annual Reports. (2018). https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annual_report2018_en.pdf?la=zh

Annual Reports. (2019). https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annual_report_2019_en.pdf?la=en

Amernic, J. (1992). A Case Study in Corporate Finantial Reporting: Massey Ferguson`s Visible Accounting Decisions 1970-1987. Critical Perspectives on Accounting, 3(1), 1-43. https://doi.org/10.1016/1045-2354(92)90013-H

Arino, A., LeBaron, C., & Miliken, F. (2016). Publishing qualitative research in Academy of Management Discoveries. Academy of Management Discoveries, 2(2), 109- 113. https://doi.org/10.5465/amd.2016.0034

Baron, A., Rayson, P., & Archer, D. (2009). Word frequency and keyword sta- tistics in historical corpus linguistics. Anglistik: International Journal of English Studies, 20(1), 41-67.

BBC. (2019). https://www.bbc.com/news/business-46480208

Breeze, R. (2018). Researching evaulative discourse in anual reports using semantic tagging, Iberica, 35, 41- 66.

Brida, J. G., Ramón- Rodriguez, A. B., Such- Devesa, M.J., & Driha, O. (2016). The inverted U- relationship between the degree of internationalization and the performance: The case of Spanish hotel chains. Tourism Manage ment Perspectives, 17, 72-81.

Carrillo-Viveros, J., & Micheli- Thirion, J. (2017). Huawei and Foxconn: Pioneering cases of the new internationalization and regional expan- sión of China in México. Estudios Sociales, 50(7), 1-16. http://dx.doi.org/10.24836/es.v27i50.409

Casanova, L., & Miroux, A. (2019). Chinese companies conquering the world: A descriptive analysis of the rapid rise of Chinese acquisitions. Journal of Evolutionary Studies in Business, 4(2), 13-44. https://doi.org/10.1344/ jesb2019.2.j059

Contractor, F. J., Kundu, S. K., & Hsu C. C. (2003). A three-stage theory of international expansion: The link between multinationality and perfor- mance in the service sector.Journal of International Business Studies, 34(1). https://doi.org/10.1057/palgrave.jibs.8400003.

Contractor, F.J. (2012). Why do multinational firm exist?. A theory note about the effect of multinational expansion on performance and recent methodological critiques. Global Strategy Journal, 2, 318- 331. https://doi.org/10.1111/j.20425805.2012.01045.x

Cuervo-Cazurra, A. (2007). Liberalización económica y multilatinas. Journal of Globalization. Competitiveness & Governability, 1(1), 66-86. http://gcg.universia.net/pdfs_revistas/articulo_65_1195588110106.pdf

Dalmoro-Costas, A., Freitas-Camboin, G. F., & Carneiro-Zen, A. (2018). In- ternationalization patterns and their effects on company performance. Journal of Operations and Supply Chain Management, 11(1), 53-63.

Dau, L. A. (2011). Reforms, multinationalization and profitability. Academy of Management Annual Meeting Proceedings. https://doi.org/10.5465/ambpp.2011.65870646

Deng, Z., Zou, Y., & Mao, J. Y. (2018). Unconventional internationalization of Huawei: The role of core values in Iñiguez de Onzon, S., & Ichijo, K. (Eds.), Business Despite Borders. Springer Eds.

Drahokoupil, J., McCaleb, A., Pawlicki, P., & Szunomar, A. (2017). Huawei in Europe: Strategic integration of local capabilities in a global production network, In Chinese investment in Europe: corporate strategies and labour relations. European Trade Union Institute.

Elango, B., & Prakash-Sethi, S. (2007). An exploration of the relationship bet- ween country of Origin (COE) and the internationalization performance paradigm. Management International Review, 47, 369-392. https://doi. org/10.1007/s11575-007-0021-5

El Haj, M., Alves, P., Rayson, P., Walker, M., & Young, S. (2020). Retrieving, clssiffyng and analysing narrative commentary in unstructured (glossy) anual reports published as PDF files. Accounting and Business Research, 50(1), 6-34. https://doi.org/10.1080/00014788.2019.1609346

Hejazi, W., & Santor, E. (2010). Foreign asset risk exposure, DOI, and perfor- mance: An analysis of Canadian Banks. Journal of International Business Studies, 41, 845-860.

Hitt, M. A., Hoskinsson, R. E., & Kim, H. (1997). International diversifica- tion: effects on Innovation and firm performance in product- diversified firms. Academy of Management Journal, 40(4), 767- 798. https://doi.org/10.2307/256948

Hsieh, H. F., & Shannon, S. E. (2005). Three approaches to qualitative con- tent analysis. Qualitative Health Research, 15(9), 1277- 1288. https://doi.org/10.1177/1049732305276687

Huawei. (2021). https://shop.huawei.com/mx/?utm_medium=cpc&utm_ s o u r c e = s e a r c h & u t m _ c a m p a i g n = g l o b a l s e m & u t mcontent=generalbrand&utm_term=huawei&gclid=Cj0KCQiAvP6ABhCjARIsAH37rbTlFZVDyW5RhvMpf7OUZp4bu2yUqKIxWdOgR0Vjn- v5buvzoT9JJ3rUaAgEsEALw_wcB

Huawei. (2020a). https://www.huawei.com/mx/about-huawei/corporateinformation

Huawei. (2020b). https://www.huawei.com/mx/about-huawei/corporate-information/milestone

Gerged, A. M., Cowton, C. J., & Beddewela, E. S. (2018). Towards suistainable development in the Arab Middle East and North Africa región: A longi- tudinal analysis of environmental discourse in corporate anual reports. Business Strategy and the Environmental, 27, 572- 587.

Kafourus, M., Buckley, P. J., & Clegg, J. (2012). The effects of global knowledge reservoirs of the productivity of multinational enterprises: The role of international breadth and depth. Research Policy, 41(5), 848- 861.

Langley, A., & Abdallah, C. (2011). Templates and turns in qualitative studies of strategy and management in D. D. Bergh & D. J. Ketchen (Eds.), Building methodological bridges: Research methodology in strategy and management (pp. 201-235). Emerald Group Publishing Limited.

López- Morales, J. S. (2020). Internationalization an analysis of 26 definitions.

Intersticios Sociales, 19, 87- 99.

Low, B. (2007). Huawei technologies corporations: From local dominance to global challenge. Journal of Business & Industrial Marketing, 22(2), 138- 144. https://doi.org/10.1108/08858620710730258

Mendoza, X., Espinoza- Mendez, C., & Araya- Castillo, L. (2020). When geo- graphy matters: International diversification and firm performance of Spanish multinationals. Business Research Quarterly, 23, 1- 17. https:// doi.org/10.1016/j.brq.2018.10.006

Miller, G. A., Newman, E. B., & Friedman, E.A. (1958). Length- frequency statistics for written English. Information and Control, 1(4), 370- 389. https://doi.org/10.1016/S0019-9958(58)90229-8

Micheli, J., & Carrillo, J. (2016). Huawei: Trayectoria global y estrategia par a México de una multinacional china. Frontera Norte, 28(56), 35-58. https://doi.org/10.17428/rfn.v29i56.159

Myšková, R., & Hájek, P. (2017). Comprehensive assessment of firm finan- cial performance using financial ratios and linguistic analysis of annual reports. Journal of International Studies, 10(4), 96-108. https://doi. org/10.14254/20718330.2017/10-4/7

Ozdemir, E., Altintas, M. H., & Kilic, S. (2017). The effects of degree of in- ternationalization on export performance: A research on exporters in Turkey. Business and Economics Research Journal, 8(3), 611- 626. https://doi.org/10.20409/berj.2017.69

Pan, W. H., & Tsai, W. H. (2012). Internationalization, regional diversification and firm performance: the moderating effects of administrative intensity. International Journal of Business and Social Science, 3(18), 274-282.

Root, F. R. (1994). Entry strategies for international marlets. Lexington books.

Romero, F. (2016). Information hidden intangible resources: susainability or anual reports? European Research on Management and Business Economics, 22, 101-109.

Sullivan, D. (1994). Measuring the degree of internationalization of a firm. Journal of International Business Studies. 25, 325-342. https://doi. org/10.1057/palgrave.jibs.8490203

Sun, S. L. (2009). Internationalization strategy of MNEs from emerging eco- nomies: The case of Huawei. Multinational Business Review, 17(2), 133-159.

Thomas, D. E., & Eden, L. (2004). What is the shape of the multinationali- ty- performance relationship? The Multinational Business Review, 12(1), 89- 110.

Velez- Calle, A., Sanchez- Henriquez, F., & Contractor, F. (2018). Internatio- nalization and performance: The role of depth and breadth. Academia Revista Latinoamericana de Administración, 31(1), 91-104.

Vernon, R. (1971). Sovereignity at bay, the multinational spread of U.S. enter- prises. Basic Books.

Webster. (2020). https://www.merriam-webster.com/

Zakery, A., & Saremi, M. S. (2020). Knowledge and intellectual capital in in- ternationalizing SMEs, case study in technology based health companies. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-02-2020-0048

Downloads

Published

2021-04-29 — Updated on 2021-08-13

Versions

How to Cite

López Morales, J. S. . (2021). Qualitative Measure of the Degree of Internationalization: The Case of Huawei. México Y La Cuenca Del Pacífico, 10(29), 173-191. https://doi.org/10.32870/mycp.v10i29.724 (Original work published April 29, 2021)