Comparing Chinese and the Indian Software MNCs: Domestic and Export Market Strategies and their Interplay

Niosi, Jorge and Tschang, Feichin Ted (2008). Comparing Chinese and the Indian Software MNCs: Domestic and Export Market Strategies and their Interplay. UNU-MERIT.

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  • Sub-type Working paper
    Author Niosi, Jorge
    Tschang, Feichin Ted
    Title Comparing Chinese and the Indian Software MNCs: Domestic and Export Market Strategies and their Interplay
    Publication Date 2008
    Place of Publication Maastricht, NL
    Publisher UNU-MERIT
    Pages 55
    Abstract China and India are emerging as major new entrants in the international software industry. Both are rapidly learning through outsourcing with multinational enterprises from advanced nations. Yet, their paths to this dynamic sector are very different. Chinese software firms have focused on their domestic market by working with foreign MNCs, while they move cautiously abroad. Indian firms, despite already being large, continue to expand overseas as well as to climb the value chain. We show that a macro perspective on the global movement of work can be gained by utilizing concepts from different approaches to the MNC. At the same time, the innovation systems perspective is necessary to explain the foundations of the industry. The paper provides hypotheses and performs an initial validation of them. It concludes that the internationalization and learning processes are somewhat different in the Chinese and Indian MNCs, and provides explanations for the different patterns.
    Keyword Outsourcing
    Software industry
    Industrial development
    Multinational enterprise
    JEL P45
    O14
    O32
    L23
    Copyright Holder UNU-MERIT
    Copyright Year 2008
    Copyright type All rights reserved
    ISSN 18719872
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    Created: Wed, 11 Dec 2013, 16:23:16 JST