Lucia Clara Banchieri, Fernando Campa‐Planas, Rosalia Cascón, Maria Belen Guercio, Ana Beatriz Hernández‐Lara and Maria Victoria Sánchez‐Rebull
This article aims to analyse the reasons for Spanish companies to invest in China and the factors that influence the success or failure of the venture during the implementation…
Abstract
Purpose
This article aims to analyse the reasons for Spanish companies to invest in China and the factors that influence the success or failure of the venture during the implementation process.
Design/methodology/approach
This paper is based on an interview held with the two partners of the Garrigues office in Shanghai, Francisco Soler and Manuel Torres. Francisco Soler was responsible for opening and subsequently managing the office from 2005 through to August 2011, when he handed over the reins to Manuel Torres.
Findings
The main reason for investing in China is its market. It is worth mentioning here that there has been a paradigm shift whereby China has gone from being the “world's factory” to the “world's market”, not just because of its size but also because of the dizzying speed at which it continues to grow. To minimise the risks of investing in China, the interviewees pointed out the crucial importance of the company committing a significant amount of all kinds of resources to the venture. They also maintain that the investing company should ensure that the people responsible for the project are fully committed to the company and completely familiar with its operations and corporate culture.
Originality/value
The value of this study lies in contrasting the practical viewpoint of Garrigues legal consulting firm with the existing literature on the topics discussed in the interview: the reasons why companies invest in China, and the factors that lead to their success or failure.
Details
Keywords
Quico Marin-Anglada, Fernando Campa-Planas and Ana Beatriz Hernandez-Lara
This article aims to compare the average profitability by sector for companies that have invested in China during 2008-2011, with the average profitability for Spanish firms from…
Abstract
Purpose
This article aims to compare the average profitability by sector for companies that have invested in China during 2008-2011, with the average profitability for Spanish firms from the same sector.
Design/methodology/approach
Analysis done through Analysis System of Iberian Balances (SABI) database.
Findings
The results show that companies that invest in China gain economic rewards that are greater than those that do not invest in China, with the most profitable sectors comparatively being the metallurgy and the wholesale trade.
Originality/value
We have not found previous analysis in this way.