FDI in China

 Research area and background 　
Advancement in science and technology has brought about tremendous changes in the world. Under the influence of globalization, increasing competition among cities has been witnessed all over the world and urban competitiveness has become a new research topic(Jiang 2007). Since the economic reform began in the late 1980s, China has been engaged in a process of economic liberalization and opening up to foreign trade and FDI (foreign direct investment). Since China’s entry into the World Trade Organization (WTO) was approved in 2001, barriers to foreign trade are gradually removed. As a result, more and more multinational corporations have joined the competition to attract huge Chinese consumer. What drives the financial performance of multinational corporations (MNCs) has long been a topic of great interest to academics. For example, Chen (1999) examines linkage between entry mode choice and international performance of MNCs. Furthermore, determinants of foreign equity ownership in joint ventures in China are discussed in many researches (Pan, 1996) .In a study of financial performance and survival of multinational corporations in China, Pan and Peter (1999) concluded that making successful strategy decisions about the foreign market depended on such factors as including entry timing, mode of entry and considering the competitive environment and organizational resources. They also proposed that EJVs were more likely to survive compared to cooperative operations, while wholly owned subsidiaries did not differ from EJVs. In my thesis, I want to investigate several key questions in the context of Ikea investment in Chinese market. Ikea has been considered as a legend in the global business world and there have been a lot of studies on Ikea from different perspectives. Barthelemy (2006) present the history of the successful Swedish furniture retailer and discuss Ikea’s unique business strategy in the international market. Some researchers show great interest in Ikea’s founder, Ingvar Kamprad (Business Strategy Review 2004). Not much attention has been devoted to the relationship between service business culture and services marketing strategy. Hence, the aim of this paper is to contribute to a better understanding of the strategic role that business culture and entry modes have for business performance in a long-term perspective. I find case study to be the most appropriate research strategy for the research. “It is of great importance that the selected cases are relevant to the purpose of the study, and that the respondents have abundant information on the studied phenomenon when performing the case studies.” (Holme&Solvang, 1991, quoted in Isaksson& Suljanovic, 2006)

 

Title: FDI in China
Release Date: 2010-8-26 15:10:37
Paper Language: English
Countries: China
Areas of expertise: Financial investment
Paper use: MA dissertation
Deadline for submissions: 2010-5-31#p#分頁標題#e#
words required: 10000
School Background:  Foreign Languages Institute

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