IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v39y2004i3p268-282.html
   My bibliography  Save this article

Successful localization programs in China: an important element in strategy implementation

Author

Listed:
  • Fryxell, Gerald E.
  • Butler, John
  • Choi, Amanda

Abstract

Globalization has resulted in firms increasingly establishing operations in other countries, often as a way to reduce costs. Localizing management, by replacing expatriates with locals further reduces operating costs, can be important to successful strategy implementation. This study examined expatriate localization programs in 67 multinational firms operating within the Peoples' Republic of China (PRC). The results show that planning aspects of a localization program and efforts to improve selection have significant, positive effects on the program's success.

Suggested Citation

  • Fryxell, Gerald E. & Butler, John & Choi, Amanda, 2004. "Successful localization programs in China: an important element in strategy implementation," Journal of World Business, Elsevier, vol. 39(3), pages 268-282, August.
    • Handle: RePEc:eee:worbus:v:39:y:2004:i:3:p:268-282
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951604000148
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kendall, D. W., 1981. "Repatriation: An ending and a beginning," Business Horizons, Elsevier, vol. 24(6), pages 21-25.
    2. Richard D Hays, 1974. "Expatriate Selection: Insuring Success and Avoiding Failure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 5(1), pages 25-37, March.
    3. Yadong Luo, 1998. "Timing of Investment and International Expansion Performance in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 391-407, June.
    4. Meg G Birdseye & John S Hill, 1995. "Individual, Organizational/Work and Environmental Influences on Expatriate Turnover Tendencies: An Empirical Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 787-813, December.
    5. Quere, Michel, 1994. "Basic research inside the firm: Lessons from an in-depth case study," Research Policy, Elsevier, vol. 23(4), pages 413-424, July.
    6. Herbert A. Simon, 1991. "Bounded Rationality and Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 125-134, February.
    7. Stanley F. Slater & Eric M. Olson, 2000. "Strategy type and performance: the influence of sales force management," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 813-829, August.
    8. Daniel C Feldman & David C Thomas, 1992. "Career Management Issues Facing Expatriates," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(2), pages 271-293, June.
    9. Dan Schendel, 1991. "Introduction to the special issue on global strategy," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 1-3, June.
    10. Michael G Harvey, 1989. "Repatriation of Corporate Executives: An Empirical Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(1), pages 131-144, March.
    11. William G Egelhoff, 1984. "Patterns of Control in U.S., UK and European Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 73-83, June.
    12. H. Kevin Steensma & Marjorie A. Lyles, 2000. "Explaining IJV survival in a transitional economy through social exchange and knowledge‐based perspectives," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 831-851, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Furusawa, Masayuki & Brewster, Chris, 2015. "The bi-cultural option for global talent management: The Japanese/Brazilian Nikkeijin example," Journal of World Business, Elsevier, vol. 50(1), pages 133-143.
    2. Hitotsuyanagi-Hansel, Azusa & Froese, Fabian Jintae & Pak, Yong Suhk, 2016. "Lessening the divide in foreign subsidiaries: The influence of localization on the organizational commitment and turnover intention of host country nationals," International Business Review, Elsevier, vol. 25(2), pages 569-578.
    3. Leung, Kwok & Wang, Zhongming & Hon, Alice H.Y., 2011. "Moderating effects on the compensation gap between locals and expatriates in China: A multi-level analysis," Journal of International Management, Elsevier, vol. 17(1), pages 54-67, March.
    4. Geovana Alves de Lima Fedato & Vanessa Martins Pires & Guilherme Trez, 2017. "The Future of Research in Strategy Implementation in the BRICS Context," Brazilian Business Review, Fucape Business School, vol. 14(3), pages 288-303, May.
    5. Lucía Isabel García Cebrián & Antonio Muñoz Porcar, 2010. "Potencial de las comarcas aragonesas para la localización industrial. Implicaciones para las autoridades públicas," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 2, pages 177-197.
    6. Ng, Paul Wai-Kit & Lau, Chung-Ming & Nyaw, Mee-Kau, 2007. "The effect of trust on international joint venture performance in China," Journal of International Management, Elsevier, vol. 13(4), pages 430-448, December.
    7. Li, Chun-Sheng Joseph & Lee, Po-Yen & Liou, James J.H., 2018. "Exploring the staff localization of Taiwanese MNC subsidiaries in China: Effects of size, operation time, location, and local-market focus," Journal of Business Research, Elsevier, vol. 88(C), pages 20-27.
    8. Nan Zhou & Heli Wang, 2020. "Foreign subsidiary CSR as a buffer against parent firm reputation risk," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1256-1282, October.
    9. Jack Pegram & Gioia Falcone & Athanasios Kolios, 2019. "Quantitative and Qualitative Assessment of Job Role Localization in the Oil and Gas Industry: Global Experiences and National Differences," Energies, MDPI, vol. 12(6), pages 1-22, March.
    10. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    11. Michailova, Snejina & Fee, Anthony & DeNisi, Angelo, 2023. "Research on host-country nationals in multinational enterprises: The last five decades and ways forward," Journal of World Business, Elsevier, vol. 58(1).
    12. Li, Julie Juan & Zheng Zhou, Kevin & Lam, Simon S.K. & Tse, David K., 2006. "Active trust development of local senior managers in international subsidiaries," Journal of Business Research, Elsevier, vol. 59(1), pages 73-80, January.
    13. Nan Zhou & Heli Wang, 0. "Foreign subsidiary CSR as a buffer against parent firm reputation risk," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-27.
    14. Jack Pegram & Gioia Falcone & Athanasios Kolios, 2018. "A Review of Job Role Localization in the Oil and Gas Industry," Energies, MDPI, vol. 11(10), pages 1-18, October.
    15. Alessandra L. González, . "Insider’s advantage: when foreign firms do not capture opportunity in the local labour market," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    16. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Environmental risks, localization and the overseas subsidiary performance of MNEs from an emerging economy," Journal of World Business, Elsevier, vol. 51(3), pages 356-368.
    17. Li, Julie Juan, 2008. "How to retain local senior managers in international joint ventures: The effects of alliance relationship characteristics," Journal of Business Research, Elsevier, vol. 61(9), pages 986-994, September.
    18. Li, Ying & Shou, Yongyi & Ding, Ronggui & Sun, Tao & Zhou, Qing, 2019. "Governing local sourcing practices of overseas projects for the Belt and Road Initiative: A framework and evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 212-226.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cappellen, Tineke & Janssens, Maddy, 2005. "Career paths of global managers: Towards future research," Journal of World Business, Elsevier, vol. 40(4), pages 348-360, November.
    2. Eugenia Sánchez Vidal, M & Valle, Raquel Sanz & Isabel Barba Aragón, M, 2007. "Antecedents of repatriates' job satisfaction and its influence on turnover intentions: Evidence from Spanish repatriated managers," Journal of Business Research, Elsevier, vol. 60(12), pages 1272-1281, December.
    3. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    4. Robert Konopaske & Chet Robie & John M. Ivancevich, 2009. "Managerial Willingness to Assume Traveling, Short-term and Long-term Global Assignments," Management International Review, Springer, vol. 49(3), pages 359-387, June.
    5. Harvey, Michael G. & Richey, R. Glenn, 2001. "Global supply chain management: The selection of globally competent managers," Journal of International Management, Elsevier, vol. 7(2), pages 105-128.
    6. Selmer, Jan & Ebrahimi, Bahman P. & Mingtao, Li, 2002. "Career management of business expatriates from China," International Business Review, Elsevier, vol. 11(1), pages 17-33, February.
    7. Scullion, Hugh & Brewster, Chris, 2001. "The management of expatriates: messages from Europe?," Journal of World Business, Elsevier, vol. 36(4), pages 346-365, January.
    8. Pamela L. Cox & Raihan H. Khan & Kimberly A. Armani, 2013. "Repatriate Adjustment And Turnover: The Role Of Expectations An Perceptions," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 4(1), pages 1-15.
    9. Thomas, David C. & Lazarova, Mila B & Inkson, Kerr, 2005. "Global careers: New phenomenon or new perspectives?," Journal of World Business, Elsevier, vol. 40(4), pages 340-347, November.
    10. Inkson, Kerr & Arthur, Michael B. & Pringle, Judith & Barry, Sean, 1997. "Expatriate assignment versus overseas experience: Contrasting models of international human resource development," Journal of World Business, Elsevier, vol. 32(4), pages 351-368, January.
    11. Selmer, Jan, 1999. "Corporate expatriate career development," Journal of International Management, Elsevier, vol. 5(1), pages 55-71.
    12. Usunier, Jean-Claude, 1998. "Oral pleasure and expatriate satisfaction: an empirical approach," International Business Review, Elsevier, vol. 7(1), pages 89-110, February.
    13. Krstic, Bojan & Krstic, Milos, 2015. "Models Of Irrational Behaviour Of Household And Firm," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 61(4), pages 1-10, December.
    14. Pooja Kushwaha & M. K. Rao, 2017. "Integrating the Linkages between Learning Systems and Knowledge Process: An Exploration of Learning Outcomes," Business Perspectives and Research, , vol. 5(1), pages 11-23, January.
    15. Lovric, M. & Kaymak, U. & Spronk, J., 2008. "A Conceptual Model of Investor Behavior," ERIM Report Series Research in Management ERS-2008-030-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    16. Li, Mingxiang, 2021. "Exploring novel technologies through board interlocks: Spillover vs. broad exploration," Research Policy, Elsevier, vol. 50(9).
    17. Martina Linnenluecke & Andrew Griffiths & Peter Mumby, 2015. "Executives’ engagement with climate science and perceived need for business adaptation to climate change," Climatic Change, Springer, vol. 131(2), pages 321-333, July.
    18. Manrique Hernández-Ramírez & Ronald Mora-Esquivel & Juan Carlos Leiva, 2022. "Orientación emprendedora y desempeno innovador en mipymes. El rol moderador de la orientación estratégica," Estudios Gerenciales, Universidad Icesi, vol. 38(162), pages 95-108, March.
    19. Micheels, Eric T., 2014. "Experience and learning in beef production: Results from a cluster analysis," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(3), pages 1-10.
    20. Giuseppe Pernagallo & Benedetto Torrisi, 2020. "A theory of information overload applied to perfectly efficient financial markets," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 14(2), pages 223-236, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:39:y:2004:i:3:p:268-282. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.