Policy Constraints And Strategic Choices: MNE Subsidiaries Market Penetration In China

This study describes how firm level decisions and capabilities correspond to policy conditions in a host country where local market access is constrained and success is contingent on compliance with cultural hegemony. Using data from surveys gathered from multinational enterprise (MNE) subsidiaries...

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Bibliographic Details
Published in:Journal of applied business research 2013-11, Vol.29 (6), p.1705-1716
Main Authors: Wang, Jifu, Salazar, Ronald J, Ben-Ur, Joseph
Format: Article
Language:English
Subjects:
Adaptation
Business strategies
China
Competition
Competitive advantage
Core competencies
Corporate culture
Development strategies
Economic policy
Emerging markets
Foreign investment
Foreign subsidiaries
Hegemony
Host country
Human resources
Innovations
Market analysis
Market entry
Market penetration
Market potential
Marketing
Multinational corporations
Multinational enterprises
R&D
Research & development
Strategic planning
Studies
Subsidiaries
Technological change
Technology adoption
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Summary:This study describes how firm level decisions and capabilities correspond to policy conditions in a host country where local market access is constrained and success is contingent on compliance with cultural hegemony. Using data from surveys gathered from multinational enterprise (MNE) subsidiaries operating in China, we describe the mode of entry the firms have used to penetrate and exploit markets in light of the constrained strategic choices open to their subsidiaries. We also expose the patterns of growth accomplished by the MNE and their underlying bases of competitive advantage. Finally, we relate the degree of centralization we observe among the respondents strategies.
ISSN:0892-7626
2157-8834
DOI:10.19030/jabr.v29i6.8208