China has become a major player in the world economy and is one of the most attractive markets for foreign market entry. However, only a few studies have examined the success or failure of these entries. This study highlights two strategies to cope with a dynamic and complex market environment: Process flexibility of companies as well as the level of collaboration with supply chain partners. The results are based on the responses of 248 decision-makers of German manufacturing facilities located in China.
The study shows that companies in an uncertain environment should carefully assess and plan foreign market entry in detail. On the one side, it is recommended that companies should strengthen process flexibility in order to respond to high dynamics and local-specific requirements. On the other side, findings imply that a higher level of information sharing and process integration with suppliers, customers, and logistics service providers reduces uncertainty and leads to better performance results.