International Experience and the Performance of Scandinavian Firms in China

Research output: Contribution to journalArticle

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.

Details

Authors
External organisations
  • Stockholm School of Economics
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics

Keywords

  • FDI, firms, experience, China, Scandinavia
Original languageEnglish
Pages (from-to)21-40
Number of pages20
JournalInternational Business Review
Volume14
Issue number1
Publication statusPublished - 2005 Feb
Publication categoryResearch
Peer-reviewedYes
Externally publishedYes