The Evolution Of Strategies: Multinational Subsidiaries Operating In China

This is a study of the evolution of strategies of large multinational (MNC) firms doing business in China. Using the TOWS approach (Weirich, 1982) we classified the strategic posture of MNC subsidiaries in China into four discrete frames based on a survey of large firms. The results of our study app...

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Bibliographic Details
Published in:Journal of applied business research 2013-09, Vol.29 (5), p.1261
Main Authors: Salazar, Ronald J., Wang, Jifu
Format: Article
Language:English
Subjects:
Competition
Competitive advantage
Evolution
Foreign investment
Foreign subsidiaries
Host country
Knowledge
Multinational corporations
Organizational learning
Studies
Success
Transfer pricing
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Summary:This is a study of the evolution of strategies of large multinational (MNC) firms doing business in China. Using the TOWS approach (Weirich, 1982) we classified the strategic posture of MNC subsidiaries in China into four discrete frames based on a survey of large firms. The results of our study applying the TOWS approach have allowed us to expose the trend of strategic evolution. We find that the primary investment motivation of MNS in China has changed from low labor cost to exploiting Chinese market. We report the motivations, actions, and aspirations of the managers of largest multinational subsidiaries operating there.
ISSN:0892-7626
2157-8834
DOI:10.19030/jabr.v29i5.8012