An Empirical Analysis of Danish Companies' Experiences in the People's Republic of China

In the last ten years or so, the People's Republic of China has been the subject of increasing attention on the part of researchers and practicioners alike, not least because of the potential trading implications for Western firms (and economies) of China's "open door policy." This paper examines the business experience of small and medium-sized Danish companies in dealing with the People's Republic of China. Based on information provided by 49 companies responding to a mail questionnaire, the study provides empirical evidence relating to (1) the motivation underlying the firms' decision to enter the Chinese market, (2) the forms of initial market contact and modes of market entry, (3) the bases of competitive advantage, (4) the specific difficulties/problems associated with setting up and operating in this market, and (6)the perception of the companies as to the success of their efforts. The results are placed in the context of previous analyses of the peculiarities of China as a trading partner for Western firms and their managerial implications are considered in terms of highlighting issues of practical importance for companies contemplating the establishment of links with what has come to be known as "the world's largest untapped market."