Location determinants of market expansion in China’s second-tier cities: a case study of the biotechnology industry

Location determinants of market expansion in China’s second-tier cities: a case study of the... Purpose – This study aims to examine the location determinants of market expansion of the biotechnology industry to China’s second-tier cities. Design/methodology/approach – The authors involved 68 top management officials of biopharmaceutical firms in China by applying triangulation data collection, which comprises depth interview, questionnaire survey and focus group discussion. Findings – Data collection results reveal the following: 20 location determinants are determined and categorized into 5 clusters (i.e. 3 cost/tax factors, 5 demand factors, 1 macroeconomic factor, 3 socio-political factors and 8 strategic factors); among these 20 factors, 9 factors contribute to firm benefits, 5 factors open opportunities for business growth and 6 factors pose potential risks. Originality/value – This study proposes a framework of location determinants for biotech pharmaceutical industry in expanding second-tier cities of China market. The findings of this study can be used as a reference for multinational companies, specifically in market expansion to second-tier cities in China. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business & Industrial Marketing Emerald Publishing

Location determinants of market expansion in China’s second-tier cities: a case study of the biotechnology industry

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0885-8624
DOI
10.1108/JBIM-03-2012-0048
Publisher site
See Article on Publisher Site

Abstract

Purpose – This study aims to examine the location determinants of market expansion of the biotechnology industry to China’s second-tier cities. Design/methodology/approach – The authors involved 68 top management officials of biopharmaceutical firms in China by applying triangulation data collection, which comprises depth interview, questionnaire survey and focus group discussion. Findings – Data collection results reveal the following: 20 location determinants are determined and categorized into 5 clusters (i.e. 3 cost/tax factors, 5 demand factors, 1 macroeconomic factor, 3 socio-political factors and 8 strategic factors); among these 20 factors, 9 factors contribute to firm benefits, 5 factors open opportunities for business growth and 6 factors pose potential risks. Originality/value – This study proposes a framework of location determinants for biotech pharmaceutical industry in expanding second-tier cities of China market. The findings of this study can be used as a reference for multinational companies, specifically in market expansion to second-tier cities in China.

Journal

Journal of Business & Industrial MarketingEmerald Publishing

Published: Mar 2, 2015

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