International Experience and the Performance of Scandinavian Firms in China
AbstractWestern firms locating in China face a business environment that differs from their home country environment. The differences increase uncertainties and are negative for economic performance. However, firms may differ in their ability to overcome the difficulties, depending on their previous experience. In particular, firms with experience from regions similar to China might do comparably well. We conduct a survey of Scandinavian firms with subsidiaries in China to examine their economic performance. Our results show that subsidiaries in China perform better if the firms have subsidiaries in Hong Kong, Taiwan, or Singapore. In addition, the length of subsidiaries’ operation in China, and the experience from foreign countries outside of Greater China, are also positively affecting the subsidiaries’ economic performance.
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Bibliographic InfoPaper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number 188.
Length: 35 pages
Date of creation: 01 Feb 2004
Date of revision:
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Postal: The European Institute of Japanese Studies, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Web page: http://www.hhs.se/eijs/
More information through EDIRC
FDI; Firms; Experience; China; Scandinavia;
Other versions of this item:
- Carlsson, Johan & Nordegren, Axel & Sjöholm, Fredrik, 2005. "International experience and the performance of Scandinavian firms in China," International Business Review, Elsevier, vol. 14(1), pages 21-40, February.
- F20 - International Economics - - International Factor Movements and International Business - - - General
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- M20 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - General
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