ABSTRACT

This chapter focuses on the timing of entry into the Chinese market. It begins with the importance of foreign direct investment (FDI) timing into emerging economies and discusses of conceptual foundations. The chapter illustrates the economic effect of timing of entry into China and discusses timing strategy. It provides some survey results on the relationship between FDI timing and firm performance. The chapter highlights Managerial implications and guidance for international executives. The microeconomic model maintains that the income effect of a foreign investor's timing may also be influenced by the timing of market entry of other foreign firms in the same industry. While the timing of FDI is an important dimension that affects the entry decisions, it is important to caution that such a dimension is not the sole determinant of FDI decisions. As pioneers, early movers are confronted with more operational risks and uncertainties.