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Title: Foreign operations in China : a comparison of the strategies of Asian, European, Japanese and US firms
Authors: Tse, David K.
Pan, Yigang
Au, Kevin Y.
Keywords: Asian
Entry strategies
Issue Date: 24-Mar-1994
Series/Report no.: Marketing Working Paper Series ; MKTG 94.006
Abstract: This paper reports a longitudinal study on how Asian, European, Japanese, and US firms entered the People's Republic of China since the country re-opened her doors in late 1970s. The results of an investigation of 6257 foreign business operations suggest that the firms from these regions assumed distinct strategies in China. Asian firms were willing to take risks, aggressive, and linked well with Municipal governments. They had a high likelihood of forming strategic alliances with Asian and international partners, and of being located in Special Economic Zones. The European firms were more conservative and independent. They were more likely to adopt the export mode, to deal mostly with State governments and were least likely to form stategic alliances with other firms. The Japanese and US firms showed a high level of flexibility in adapting their strategies as the Chinese investment environment changed over time. The Japanese firms had the highest likelihood of teaming up with other Japanese firms, reflecting the role of "Keiretsus" in Japanese overseas operations.
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