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International experience and the performance of Scandinavian firms in China

Author

Listed:
  • Carlsson, Johan
  • Nordegren, Axel
  • Sjöholm, Fredrik

Abstract

Western 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 exhibit relatively better performance. 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, also positively impact the subsidiaries' performance.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:iburev:v:14:y:2005:i:1:p:21-40
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    References listed on IDEAS

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    1. Fan, Ying, 2002. "Questioning guanxi: definition, classification and implications," International Business Review, Elsevier, vol. 11(5), pages 543-561, October.
    2. Pan, Yigang & Li, Xiaolian, 1998. "Alliance of foreign firms in equity joint ventures in China," International Business Review, Elsevier, vol. 7(4), pages 329-350, August.
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    Cited by:

    1. Demir, Robert & Söderman, Sten, 2007. "Skills and complexity in management of IJVs: Exploring Swedish managers' experiences in China," International Business Review, Elsevier, vol. 16(2), pages 229-250, April.
    2. repec:spr:manint:v:50:y:2010:i:2:d:10.1007_s11575-010-0029-0 is not listed on IDEAS
    3. Liao, Tsai-Ju, 2015. "Local clusters of SOEs, POEs, and FIEs, international experience, and the performance of foreign firms operating in emerging economies," International Business Review, Elsevier, vol. 24(1), pages 66-76.
    4. Wu, Chih-Wen, 2011. "Global marketing strategy modeling of high tech products," Journal of Business Research, Elsevier, vol. 64(11), pages 1229-1233.
    5. Trąpczyński, Piotr & Banalieva, Elitsa R., 2016. "Institutional difference, organizational experience, and foreign affiliate performance: Evidence from Polish firms," Journal of World Business, Elsevier, vol. 51(5), pages 826-842.
    6. repec:eee:jbrese:v:88:y:2018:i:c:p:20-27 is not listed on IDEAS
    7. Lin, Feng-Jyh, 2010. "The determinants of foreign direct investment in China: The case of Taiwanese firms in the IT industry," Journal of Business Research, Elsevier, vol. 63(5), pages 479-485, May.
    8. repec:eee:riibaf:v:45:y:2018:i:c:p:323-333 is not listed on IDEAS
    9. Wu, Chih-Wen, 2016. "The international marketing strategy modeling of leisure farm," Journal of Business Research, Elsevier, vol. 69(4), pages 1345-1350.
    10. Hollender, Lina & Zapkau, Florian B. & Schwens, Christian, 2017. "SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation," International Business Review, Elsevier, vol. 26(2), pages 250-263.
    11. repec:eee:fambus:v:8:y:2017:i:4:p:224-236 is not listed on IDEAS
    12. Dikova, Desislava, 2009. "Performance of foreign subsidiaries: Does psychic distance matter?," International Business Review, Elsevier, vol. 18(1), pages 38-49, February.
    13. repec:bla:growch:v:47:y:2016:i:4:p:596-611 is not listed on IDEAS
    14. Pangarkar, Nitin, 2008. "Internationalization and performance of small- and medium-sized enterprises," Journal of World Business, Elsevier, vol. 43(4), pages 475-485, October.
    15. repec:spr:manint:v:57:y:2017:i:5:d:10.1007_s11575-017-0313-3 is not listed on IDEAS

    More about this item

    Keywords

    FDI Firms Experience China Scandinavia;

    JEL classification:

    • 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; Personnel Economics - - Business Economics - - - General

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