Abstract
Purpose
The purpose of this paper is to develop an understanding of changing business control patterns that may be critical for firms, in order to manage effective enterprise information infrastructures in and through the Chinese market.
Design/methodology/approach
This paper presents a typology that shows four types of Chinese market penetration and development, in terms of level of foreign management control and level of foreign ownership control. The model is illustrated through case examples of US, Korean, and Chinese firms.
Findings
The paper shows that sustainable design and management of enterprise information infrastructures require continuous awareness of changes in corporate management and ownership control.
Research limitations/implications
The transition paths among the four different types of global operations provide a rich basis for further theory development in the areas of the global supply chain practices beyond the Chinese market. Future research is needed to identify key variables that define the level of management and ownership control.
Practical implications
The typology and transitions paths presented in this paper may be a valuable road‐map for firms that are considering the Chinese market. In the course of implementing global supply chain strategies, foreign firms operating in China face complex business challenges, including multiple performance requirements, environmental regulations and cultural differences. In designing and managing effective enterprise information infrastructures, firms need to be conscious of both internal and external changes related to their management and ownership control. An understanding of changing business control patterns is critical if firms are to sustain effective enterprise information infrastructures in and through the Chinese market.
Originality/value
China is a potential global supply chain base. Global firms must consider carefully the extent of foreign management and ownership control with which they enter the Chinese market. These two dimensions are useful in analyzing the behavior and strategic options of global firms in this market.