The international strategic alliance (ISA) constitutes a preferred entry mode of FDI in China, a country that is now the second largest FDI recipient in the world. This paper analyses the financial performance and characteristics of Sino-foreign ISAs from a comparative perspective relative to wholly-owned subsidiaries and Chinese domestic firms. It is suggested that ISas outperform local firms in terms of efficiency and wholly-owned subsidiaries in terms of market growth, but confront more financial risks in liquidity and solvency. Implications for management are discussed.
ASJC Scopus subject areas
- Geography, Planning and Development
- Strategy and Management