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Foreign direct investment and innovation in China's e-commerce sector

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  • Wang, Xin
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    Abstract

    By comparing the business practices and performance of foreign-invested and local Internet companies in China, this article outlines the important factors that multinational corporations must address to gain competitive advantages in China's e-commerce sector. Specifically, this research compares EachNet (eBay) with Taobao in the consumer-to-consumer market; eLong (Expedia) with Ctrip and Joyo (Amazon) with Dangdang in the business-to-consumer market; and the online search engines Google China and Baidu. The author underscores the importance of local knowledge for firm performance and success. Foreign firms must improve their understanding of and ability to adapt to local cultural, social, economic, and political environments.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Asian Economics.

    Volume (Year): 23 (2012)
    Issue (Month): 3 ()
    Pages: 288-301

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    Handle: RePEc:eee:asieco:v:23:y:2012:i:3:p:288-301

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    Web page: http://www.elsevier.com/locate/asieco

    Related research

    Keywords: E-commerce; Foreign direct investment; Technology innovation;

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    1. Fred D. Davis & Richard P. Bagozzi & Paul R. Warshaw, 1989. "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models," Management Science, INFORMS, vol. 35(8), pages 982-1003, August.
    2. Kingsley E. Haynes & Lei Ding, 2006. "Technology, Innovation and Latecomer Strategies: Evidence from the Mobile Handset Manufacturing Sector in China," ERSA conference papers ersa06p17, European Regional Science Association.
    3. Choi, Changkyu, 2003. "Does the Internet stimulate inward foreign direct investment?," Journal of Policy Modeling, Elsevier, vol. 25(4), pages 319-326, June.
    4. Wolfgang Keller, 2000. "Geographic Localization of International Technology Diffusion," NBER Working Papers 7509, National Bureau of Economic Research, Inc.
    5. Ko, Kwan Wai, 2007. "Internet externalities and location of foreign direct investment: A comparison between developed and developing countries," Information Economics and Policy, Elsevier, vol. 19(1), pages 1-23, March.
    6. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
    7. Ramamurti, Ravi, 2000. "Risks and rewards in the globalization of telecommunications in emerging economies," Journal of World Business, Elsevier, vol. 35(2), pages 149-170, July.
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