Multinational Corporation Subsidiaries in China

An Empirical Study of Growth and Development Strategy


  • Jinghua Zhao, Central University of Finance and Economics, China
  • Jifu Wang, University of Houston, USA
  • Vipin Gupta, California State University
  • Tim Hudson, Texas Tech University, USA

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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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


Book information

  • Published: January 2012
  • Imprint: Chandos Publishing
  • ISBN: 978-1-84334-605-0

Table of Contents

Part 1 Overview and conceptual building blocks: Introduction; Conceptual building blocks. Part 2 Theoretical background and methodology: Theoretical background; Empirical research on growth and development strategy. Part 3 Hypothesis testing and analysis: Strategic intent: Investment and competitive factors; Corporate and functional strategies. Part 4 Conclusions: Conclusions.