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 wholly 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.