Strategic choices of firms in expanding overseas business |
| |
Authors: | Tiemin Wang Jie Zhou |
| |
Institution: | (1) Guanghua School of Management, Peking University, Bejing, 100871, China;(2) School of Public Policy and Management, Tsinghua University, Bejing, 100084, China |
| |
Abstract: | Based on a case study of Pfizer’s production scope evolution in China from 1993 to 2002, we propose that MNCs usually have
to face dual pressures of keeping integration among global businesses on the one hand, and remaining responsive to local market
conditions on the other. When there is large discrepancy between the two, due to the bounded rationality of the decision-makers,
the development paths of the subsidiaries are likely to exhibit recursive pattern, instead of the sequential mode as suggested
in the extant literature. On the other hand, we argue that companies can make strategic choices to facilitate the development
of their overseas subsidiaries. By the adjustment of the strategic parameters pertaining to the content and processes of their
development paths, companies can accumulate knowledge about the local market and strike a balance between the dual pressures
they have to face. The implication of our study for the indigenous Chinese companies in their international expansion is that
when facing unfamiliar business environment in overseas market, paying attention to the idiosyncratic local market condition
and keeping strategic flexibility are pivotal to their success.
__________
Translated from Guanli shijie 맜理世界 (Management World), 2005(10): 123–138 |
| |
Keywords: | multinational corporations(MNCs) international expansion subsidiary development strategic choices |
本文献已被 SpringerLink 等数据库收录! |
|