The paper improves Porter’s industry-based rival analysis by taking into account country-specific environments and firm responsive capabilities. In the case of MNC subsidiaries in China, it identifies large dominant SOEs as the chief rivals MNC subsidiaries face in the emerging market of China, product innovation as an effective weapon that MNC subsidiaries can use to compete with the powerful rivals, and market focus and ownership structure as important factors that moderate the effect of product innovation. The paper proposes a multilevel framework in theoretical analysis, applies HLM techniques in empirical estimation, and reaches findings that have important strategic implications for MNC managers.
|Title of host publication||New insights into operating across borders: From traditional to emerging markets|
|Subtitle of host publication||Proceedings of the ANZIBA 2013|
|Place of Publication||Sydney|
|Number of pages||36|
|Publication status||Published - 2013|
|Event||Australian and New Zealand International Business Academy Annual Conference - Macquarie University, Sydney, Australia|
Duration: 18 Apr 2013 → 20 Apr 2013
|Conference||Australian and New Zealand International Business Academy Annual Conference|
|Period||18/04/13 → 20/04/13|
Tian, X., & Lu, J. (2013). Know who are your rivals and how to deal with them: MNCs in China. In New insights into operating across borders: From traditional to emerging markets: Proceedings of the ANZIBA 2013 (pp. 1-36). Sydney: ANZIBA.