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Multinational Corporation Subsidiaries in China. An Empirical Study of Growth and Development Strategy. Chandos Asian Studies Series

  • ID: 3744627
  • Book
  • January 2012
  • Region: China
  • Elsevier Science and Technology
This comprehensive study examines the global strategies of multinational corporations (MNCs), the strategic evolution and the categories of their subsidiaries in China based on 150 MNCs. It is the first large-scale project of this nature to be conducted. The research has significant bearing on strategic planning for firms that have set up, are setting up or are planning to establish subsidiaries in China, and the firms that try to compete in the global marketplace. The findings are significant for the West, owing to the current economic crisis and the need to determine if subsidiary expansion strategies will help Western firms achieve the portfolio effects in operations and avoid the harmful impact of macro events such as the existing global financial crisis. Additional empirical findings, analysis, discussions, and suggestions for future studies are also presented.
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List of figures and tables

About the authors

Part 1: Overview and conceptual building blocks

Chapter 1: Introduction


Need for this study

Practical significance of this study

Purpose and methods

Chapter 2: Conceptual building blocks


Multinational corporations (MNCs)

MNC subsidiaries

Growth and development strategy system

Strategy evolution of MNC subsidiaries

Part 2: Theoretical background and methodology

Chapter 3: Theoretical background


Evolution of MNC theory

Evolution of MNC overseas subsidiaries strategy

Chapter 4: Empirical research on growth and development strategy


Analytical model

Sample selection

Statistical methods

Hypotheses on the behaviours of MNC subsidiaries in China

Part 3: Hypothesis testing and analysis

Chapter 5: Strategic intent: investment and competitive factors



Findings and analysis


Chapter 6: Corporate and functional strategies



Findings and analysis


Part 4: Conclusions

Chapter 7: Conclusions


Growth and development strategies

Strategic system for MNC subsidiaries

Implications for practice and further research

Implications for policy-makers



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Jinghua Zhao Central University of Finance and Economics, China.

Dr Jinghua Zhao is the Dean in the School of Government at the Central University of Finance and Economics in China. He holds a PhD. from Nanjing University and his research interests include strategy and government administration. Previously, Dr. Zhao has served as Dean for the Business School at Shandong University for 12 years and published more than 40 high quality journal articles and six books in strategy. His recent research focuses on MNC strategy and comparative study across borders.
Jifu Wang University of Houston, USA.

Dr Jifu Wang is Chair of the Department of Management and Marketing and teaches strategic management at the University of Houston, Victoria, USA. Dr. Wang served as an executive in top management for several firms in the Shenzhen Special Economic Zone, China, and has rich management experiences in international business. His research interests include international strategy and organizational change. He has published 19 refereed journal articles and four book chapters in the last five years on international strategy.
Vipin Gupta California State University.

Vipin Gupta (Ph.D. from Wharton School) is a Professor and Co-director, Global Management Center at the College of Business and Public Administration, California State University- San Bernardino. He has published more than 125 refereed journal articles and book chapters, and several books, focused on three research streams. First, the dynamic modeling of technological growth and organizational performing, transformation and sustainability, incorporating global and local factors, and trading and human factors - the subject of his Ph.D. dissertation, and his two books and a strategy textbook. Second, analysis of societal and organizational cultures, the ontology and epistemology of cultural influences on individual, corporate, national, and regional level behaviors and development, and the role of institutions, strategy and policy in cultural and gender inclusion - he is the principal co-investigator and co-author of the award-winning GLOBE project on culture and leadership in 62 societies. Third, analysis of how culture influences family business models in different regions of the world - he has lead-edited 11 books on this theme.
Tim Hudson Texas Tech University, USA.

Dr Tim Hudson is Vice Chancellor at Texas Tech University, USA. He holds a PhD from Clark University, and his research interests include international development, globalization, cultural aspects of markets, international education and leadership. Dr. Hudson is a member of the International Association of University Presidents. He has conducted research, worked and led student groups in more than 40 countries around the world. Dr. Hudson has also received an honorary doctorate from London's Guildhall University for his lifetime commitment to fostering international understanding.
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