Yigang Pan

High‐versus low‐Context culture: A comparison of Chinese, Korean, and American cultures

The potential usefulness of Halls concept of high- versus low-context cultures to international marketing has been discussed widely. However, implications of this concept in marketing have largely been discussed descriptively and little attempt has been made to empirically compare various cultures in a real setting. In this article the authors report the findings from a cross-cultural study that attempts to show whether Halls description of the characteristics of high- and low-context cultures can indeed be empirically confirmed. With the use of a survey consisting of 16 items, subjects from three different countries—China, Korea, and the U.S.—representing both high- and low-context cultures, are studied. Overall, the results show that the three cultures differ in a way that is consistent with Halls conceptualization. Specifically, the Chinese and Korean subjects are shown to exhibit tendencies that are consistent with Halls description of high-context cultures, and the American subjects are shown to exhibit tendencies that are consistent with low-context cultures. For example, the subjects from China and Korea are found to be more socially oriented, to be more confrontation-avoiding, and to have more trouble dealing with new situations. The article concludes by pointing to a further need for efforts in developing measurement scales for the concept.

Financial performance and survival of multinational corporations in China

This study investigates the impact of entry timing, mode of entry, market focus, and location advantages on the financial performance and survival of multinational corporations (MNCs) in China. Three major results were found. First, MNCs that entered China in an earlier year had a higher level of profit than those that entered in a later year. Second, equity joint ventures (EJVs) had a higher profit level than cooperative operations or wholly foreign-owned subsidiaries. Third, MNCs that utilized well the location advantages in China had a higher profit. We also found that EJVs were more likely to survive compared to cooperative operations, while wholly owned subsidiaries did not differ from EJVs. The findings are based on a 2-year study of about 1000 MNC operations in China. Copyright

THE FORMATION OF JAPANESE AND U.S. EQUITY JOINT VENTURES IN CHINA

This study examines the characteristics of Japanese and U.S. equity joint ventures (EJVs) in China over a 15‐year period. These EJVs were announced between 1979 and the end of 1993. Substantial differences are found with respect to six key characteristics. They are: selection of the Chinese partner, selection of the second foreign partner (when more than one foreign partner is involved), foreign equity ownership, foreign capital contribution, EJV business scope, and the EJV location. Tentative explanations for these differences are offered from the perspectives of risk orientation, cultural similarities, and the impact of political events in China.

Market Share Performance of Foreign and Domestic Brands in China

In this study, the authors examine market share performance of foreign and domestic brands in China. Drawing on the resource-based view and brand management literature, they investigate the impacts of three sets of factors: brands’ competitive advantages, external market environments, and the length of brand existence. The authors also examine the different influences of these factors on foreign versus domestic brands. The empirical testing is based on a survey of senior executives of 408 brands in 52 product categories in China. This study offers new findings on what drives the market share performance in transition economies.

Alliance of foreign firms in equity joint ventures in China

The existing literature on international joint ventures focuses mainly on joint ventures between one foreign firm and one local firm. This study explores the phenomenon of alliances of multiple foreign firms in equity joint ventures (EJV) in China. Drawing upon the existing literature, this study proposes a set of conditions under which it is desirable for a foreign firm to seek partnership with another foreign firm. Five hypotheses are tested regarding the impact of alliance of foreign firms on the structure of EJVs. The data set consists of 5058 EJV formations in China between 1979 and 1993. The findings show that the presence of multiple foreign partners was associated with a higher level of foreign equity ownership, the risk conditions in China, presence of multiple Chinese partners, EJV industry sectors and locations.

Introduction to Greater China in the Global Market

Summary In March 1998, I started the long process of publishing this volume. After a year and six months work, this book is going to be published. Included in this publication are nine outstanding articles that address different aspects of marketing in Greater China today. I am very pleased to be part of this effort to bring the best of the work in front of the readers.