Important Determinants of Foreign Company Performance in China : Big Data Analysis

Foreign market entry is important in market development. We examine entry timing/ mode, investment, advertising, location, and interactive effects. Early entrants enjoy a high market share. The type of entry and initial investment also affect performance. Even though the effect of advertising on market share is significant, regardless of early/late entry, the effect is different, based on entry mode, investment, and industry. The effect of advertising is larger on owned subsidiaries. Non-manufacturing firms benefit more from advertising compared to manufacturing firms. Multinationals in manufacturing industries investing in Middle/Northeast China perform better, while non-manufacturing multinationals perform better in Eastern China