Location determinants of market expansion in China’s second-tier cities: a case study of the biotechnology industry

Purpose – This study aims to examine the location determinants of market expansion of the biotechnology industry to China’s second-tier cities. Design/methodology/approach – The authors involved 68 top management officials of biopharmaceutical firms in China by applying triangulation data collection, which comprises depth interview, questionnaire survey and focus group discussion. Findings – Data collection results reveal the following: 20 location determinants are determined and categorized into 5 clusters (i.e. 3 cost/tax factors, 5 demand factors, 1 macroeconomic factor, 3 socio-political factors and 8 strategic factors); among these 20 factors, 9 factors contribute to firm benefits, 5 factors open opportunities for business growth and 6 factors pose potential risks. Originality/value – This study proposes a framework of location determinants for biotech pharmaceutical industry in expanding second-tier cities of China market. The findings of this study can be used as a reference for multinational companies, specifically in market expansion to second-tier cities in China.