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No Strategy is an Island to Itself: China First-Mover and Other FDI Strategies’ Interaction Effects

No Strategy is an Island to Itself: China First-Mover and Other FDI Strategies’ Interaction Effects

Bradley J. Koch
Copyright: © 2010 |Volume: 1 |Issue: 3 |Pages: 19
ISSN: 1947-9638|EISSN: 1947-9646|EISBN13: 9781609609481|DOI: 10.4018/jabim.2010070104
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MLA

Koch, Bradley J. "No Strategy is an Island to Itself: China First-Mover and Other FDI Strategies’ Interaction Effects." IJABIM vol.1, no.3 2010: pp.35-53. http://doi.org/10.4018/jabim.2010070104

APA

Koch, B. J. (2010). No Strategy is an Island to Itself: China First-Mover and Other FDI Strategies’ Interaction Effects. International Journal of Asian Business and Information Management (IJABIM), 1(3), 35-53. http://doi.org/10.4018/jabim.2010070104

Chicago

Koch, Bradley J. "No Strategy is an Island to Itself: China First-Mover and Other FDI Strategies’ Interaction Effects," International Journal of Asian Business and Information Management (IJABIM) 1, no.3: 35-53. http://doi.org/10.4018/jabim.2010070104

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Abstract

The first-mover strategy for foreign investment is examined to determine under what conditions a significant effect exists when it is combined with other foreign investment strategies like partner selection, geographical market focus, joint-venture control, and resource commitment strategies. Using official audited data and survey data from Sichuan, the results reveal that there are significant interaction effects. The interaction effects can eliminate first-mover advantage, create a first-mover effect that previously didn’t exist, or change the direction of the effect. Consequently, the author argues that it is better to analyze strategies as a set that is formed by a series of strategic decisions made by managers as they establish foreign joint ventures and wholly owned subsidiaries.

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