Caught in the deglobalisation crosswind? De-risking by “China+1” or “In-China-For-China”
Year: 2024
Type: article
Abstract: Purpose: Foreign firms in China, particularly those from the Global West, are in a difficult position as deglobalisation and strained international relations create risk. This paper offers research avenues on how operations and supply chain management scholars can analyse the risk factors, de-risking practices, and de-risking outcomes of foreign firms in China. Design/methodology/approach: This paper is primarily based on interviews with managers of foreign firms’ subsidiaries and joint ventures in China between late 2019 and early 2024 and employs institutional theory to develop a conceptual framework. Findings: Six risk factors motivating foreign firms to consider “China+1” (diversification and multi-sourcing) or “In-China-For-China” (localisation with potential bifurcation) are identified. Four pathways focusing on politics, locations, technologies, and people enable further investigation of these de-risking strategies. Originality/value: This is the first paper to take a deeper look at perceptions, worries, and considerations of foreign firms in China and offers specific recommendations for impactful research.
Source: Figshare
Authors: Steven James Day (16957989), Jan Godsell (11416985), Yongyi Shou (20098191)
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6980451283
FWCI:
Cites:
Cited by:
Related to: