Navigating Institutional Distance: A Dual-Channel Analysis of Chinese NEV Firms’ Strategic Commitment in Europe

Sammanfattning

This thesis investigates the unconventional, high-commitment internationalization of Chinese New Energy Vehicle (NEV) manufacturers in Europe, challenging the incrementalist Uppsala model. To explain this puzzle, we synthesize the modernized OLI paradigm and Springboard perspective, conceptualizing market entry as a 0-4 ordinal spectrum of strategic commitment.Analyzing a hand-collected panel dataset of 1,019 firm-country-year observations (2016-2025) across 31 European countries via a Mundlak CRE model, the results reveal a “dual-channel” mechanism. Structurally (between-entity), host-country environmental stringency and charging infrastructure act as strategic pull factors attracting deeper commitment. Dynamically (within-entity), commitment escalation is driven by internal technological capability accumulation, while government subsidies exhibit a “Springboard reversal” with negative long-term effects.We recommend that EMNE managers prioritize endogenous technological integration over relying on home-country subsidies, while policymakers should maintain rigorous environmental standards to attract high-quality FDI. A potential problem associated with these recommendations is the unmeasured impact of sudden geopolitical shocks (e.g., EU anti-subsidy tariffs), which may disrupt these established trajectories and force premature strategic shifts.