University of Hertfordshire

By the same authors

Market entry methods for Western firms in China

Research output: Contribution to journalArticle

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Original languageEnglish
Pages (from-to)3-18
JournalAsia Pacific Journal of Marketing and Logistics
Volume15
Issue4
DOIs
Publication statusPublished - 2003

Abstract

The UK continues to be one of Europe’s leading investors in China. Many
companies have chosen the international joint venture (IJV) option as their
market entry method. However, in 2000, the growth of wholly foreignowned
enterprises (WFOEs) exceeded that of JVs for the first time. Could it
be that IJVs are on their way out as a market entry method for British firms in
China?
This article reports on a qualitative study of business relationships
between British and Chinese firms designed to examine the comparative advantages and disadvantages of IJVs and WFOEs. Case study companies
came from a variety of industries and varied in terms of company size. The
evidence from the case studies suggests that the preference for an IJV or a
WFOE as a market entry method depends on a number of key factors including
company size, experience in China, type of industry, and conditions in
the macro-environment

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