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International experience and the performance of Scandinavian firms in China

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  • 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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    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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