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

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

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 39 (2004)
    Issue (Month): 3 (August)
    Pages: 268-282

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    Handle: RePEc:eee:worbus:v:39:y:2004:i:3:p:268-282

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    References

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    1. Daniel C Feldman & David C Thomas, 1992. "Career Management Issues Facing Expatriates," Journal of International Business Studies, Palgrave Macmillan, vol. 23(2), pages 271-293, June.
    2. 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, vol. 26(4), pages 787-813, December.
    3. Richard D Hays, 1974. "Expatriate Selection: Insuring Success and Avoiding Failure," Journal of International Business Studies, Palgrave Macmillan, vol. 5(1), pages 25-37, March.
    4. Michael G Harvey, 1989. "Repatriation of Corporate Executives: An Empirical Study," Journal of International Business Studies, Palgrave Macmillan, vol. 20(1), pages 131-144, March.
    5. Kendall, D. W., 1981. "Repatriation: An ending and a beginning," Business Horizons, Elsevier, vol. 24(6), pages 21-25.
    6. William G Egelhoff, 1984. "Patterns of Control in U.S., UK and European Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 15(2), pages 73-83, June.
    7. 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.
    8. Yadong Luo, 1998. "Timing of Investment and International Expansion Performance in China," Journal of International Business Studies, Palgrave Macmillan, vol. 29(2), pages 391-407, June.
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    Cited by:
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.

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