Foreign direct investment and innovation in China's e-commerce sector

Xin Wang

Journal of Asian Economics, 2012, vol. 23, issue 3, 288-301

Abstract: By comparing the business practices and performance of foreign-invested and local Internet companies in China, this article outlines the important factors that multinational corporations must address to gain competitive advantages in China's e-commerce sector. Specifically, this research compares EachNet (eBay) with Taobao in the consumer-to-consumer market; eLong (Expedia) with Ctrip and Joyo (Amazon) with Dangdang in the business-to-consumer market; and the online search engines Google China and Baidu. The author underscores the importance of local knowledge for firm performance and success. Foreign firms must improve their understanding of and ability to adapt to local cultural, social, economic, and political environments.

Keywords: E-commerce; Foreign direct investment; Technology innovation (search for similar items in EconPapers)
JEL-codes: F21 L81 O31 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:23:y:2012:i:3:p:288-301

DOI: 10.1016/j.asieco.2010.11.007

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