Critical intangible factors for SME multi-location strategy in China

Abstract

This paper examines the critical intangible factors observed in the multi-location process to China by Spanish manufacturing firms. The goal of this paper is to shed light on the most significant aspects of the multi-location process which can minimise the internationalisation complexity (IC) and, consequently, improve its performance. In order to fulfil this goal, perceptions by Spanish managers doing business in China are collected, using an extensive qualitative analysis. The main findings accept the fact that the IC associated with multi-location in China is effectively reduced when decision makers understand that China is extremely diverse and complex. Thus, reducing the chances of failure requires defining in advance the strategic goal when undertaking that process. In addition, it is also evidenced that the success of the process is clearly linked with a pushing attitude (proactive), the ownership of enough intangible resources, and support coming from the governmental institutions and the effective expatriated