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

  • Fryxell, Gerald E.
  • Butler, John
  • Choi, Amanda
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    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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    File URL: http://www.sciencedirect.com/science/article/pii/S1090951604000148
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    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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    1. 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.
    2. 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.
    3. Kendall, D. W., 1981. "Repatriation: An ending and a beginning," Business Horizons, Elsevier, vol. 24(6), pages 21-25.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
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