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As a consequence of aggressive competition, Chinese industries have become increasingly consolidated. While the extent to which emerging local firms can challenge well-established multinational firms varies by industry, there are common characteristics of 'winners' within each firm type. A handful of multinational and local firms emerged victorious by acquiring small, weak, and regional players to become truly national players. During this process, weaker multinational firms were crowded out of the market by stronger multinationals as well as by emerging local powerhouses. The successful local firms that survive competition in China have global ambitions and venture into international markets, challenging foreign multinational firms in the global marketplace.
This book examines how multinational firms grew their operations in China and how successful local firms emerged from the restructuring process, as well the competition between them, in the fierce marketplace of China's economic reform. While anecdotal evidence on this topic is widespread, there exists no comprehensive research. This book seeks to address this gap by rooting its discussion in the author's extensive and rigorous statistical analyses and detailed case studies across five industries: consumer products, beer, telecom, automobile, and steel.
List of contents
- 1: Introduction
- 2: Foreign Entry Strategies
- 3: Emerging Local Competitors
- 4: Competition between and among Foreign and Local Firms
- 5: Performance of Foreign Firms
- 6: Competing for the Future
- Appendix 1. Annual Industrial Survey and Definition of Firm Ownership Types
- Appendix 2. Entry Mode Decision
- Appendix 3. Location Decision
- Appendix 4. Performance Implication of Conversion of Joint Ventures to Wholly Owned Subsidiaries.
- Appendix 5. The Privatization and Firm Performance
- Appendix 6. Calculating Productivity
- Appendix 7. Determinants of Foreign Firms Market Share
- Appendix 8. Survival Analysis of Foreign and Local Firms.
- Appendix 9. Profitability Analysis of Foreign and Local Firms
- Appendix 10. Income Shifting in China
About the author
Sea-Jin Chang is a Provost's Chair Professor of Business Administration, National University of Singapore. He received his Ph.D. in strategic management from the Wharton School of the University of Pennsylvania. He previously taught at the Stern School of Business of the New York University, and had visiting appointments at Stanford Business School, INSEAD, London Business School, Hitotsubashi University, and Wharton School. His research has been published in journals and recent books include Sony vs. Samsung: The Inside Story of the Electronics' Giants Battle for Global Supremacy (Wiley, 2008), The Rise and Fall of Chaebols: Financial Crisis and Transformation of Korean Business Groups (Cambridge University Press, 2003), and Business Groups in East Asia: Crisis, Restructuring and New Growth (Oxford University Press, 2006).
Summary
Based on statistical and case study evidence, this book examines how multinational firms grew their operations in China and how successful local firms emerged from the restructuring process, as well the competition between them, in the fierce marketplace of China's economic reform.
Additional text
Sea-Jin Chang brings his masterful academic sleuthing and deep knowledge of East Asia to bear on a topic of great salience to academics, managers, and policymakers around the world, how competition in China has unfolded. Like India, China means different things to different people; it is complex enough to encompass many perspectives. Changs embrace of the analytical challenge of dealing with this complexity, through statistical analyses and fieldwork, is what makes Changs analysis relevant and riveting.
