NICHE EXPANSION BASED VIEW OF INTERNATIONALIZATION: EMPIRICAL EVIDENCE IN THE INTERNATIONALIZATION AND CATCHUP OF THE CHINA PRECISION OPTICS MANUFACTURERS

Abstract This dissertation develops and tests theories on niche expansion based view of internationalization in the context of the internationalization and catchup of China precision optics manufacturers. I apply insights from the organizational ecology theory and pay special attention to the roles of niche expansion which is observed in both international and technological dimensions. I use niche expansion perspective to explore how China precision optics manufacturers have pursued different niche strategies and how the different niche expansion strategies have influenced firm catchup performance. Six firms from China’s precision optics industry were chosen for comparative case study. The major findings include (i) firms internationalization and catch up follows international generalist or international specialist niche expansion strategies; (ii) the success and failure of firms internationalization and catch up depends on the realized niche expansion and the process, according to the principle of cross allocation, follows an upward spiral mode in the international/local and product/technology dimensions; (iii)the different International Business theories can be applied and integrated to the niche expansion perspective accordingly to the different stages of firms’ internationalization. These findings thus: (i) provide further insight in firm internationalization, late-industrialization and catch-up;(ii) reveal how niche expansion influence firm internationalization and catchup performance; (iii) cast light on the Goldilocks debate by integrating the different International Business theories. Key words: niche expansion, DMNE internationalization, DMNE catch up