Doing business in China and performance: a review of evidence

Abstract

Purpose – The number of papers focusing on foreign companies doing business in China has increased significantly since the open-door policy came into effect in the late 1970s. Performance has been one of the most researched topics. This paper aims to carry out a review of the empirical papers which have analysed the performance drivers of foreign companies in mainland China. Design/methodology/approach – The paper reviews 62 empirical papers dealing with the performance of foreign firms in mainland China, published in ten leading international academic journals between 1978 and 2006. Findings – An analysis of the main findings is offered, along with a summary of the theoretical approaches, methodologies, samples and performance measures used. Originality/value – The paper identifies the factors which contribute to greater performance in mainland China. Although other studies have reviewed the literature in the Chinese context, none had specifically tackled this topic through a comprehensive review.