Internationalization processes of automotive suppliers to China

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China has emerged as a highly attractive business destination, serving both as a local consumer market and a global production base. For foreign companies, particularly in the automotive sector, choosing the right internationalization strategy is crucial. The author explores the various paths taken by international automotive suppliers in China, a market that offers significant potential for both revenue and cost improvements amid price pressures from car manufacturers in stagnant home markets. Despite this potential, many suppliers face challenges and failures after relocating to China, as increased competition has revealed the shortcomings of early movers. This necessitates a reevaluation of their internationalization strategies. The book presents findings from a research project by the WHU Asia Center, involving numerous international suppliers and their Chinese affiliates. Key objectives include developing a framework for internationalization processes that combines strategies and modes, identifying parameters influencing strategy/mode selection, analyzing the evolution of these combinations, and providing insights from theory and best practices for executives making market entry and expansion decisions. A total of 33 relevant parameters have been identified, and four distinct evolution paths for strategy/mode combinations have been established, offering valuable guidance for navigating the complexities of the Chinese mar