Dependency or Interdependency: United States Power Generation Firms’ Entry into China

Lena Croft
Chinese University of Hong Kong, China
Shige Makino
Chinese University of Hong Kong, China

ABSTRACT

Conventional theories of market entry assume choice availability. This investment assumption is subject to challenges in the power generation market of an emerging economy where the host government controls most key resources and market entry choices. With such constraints, entrants become heavily dependent on their host country partners. This study investigates how the resource dependency frameworks explain better in respect of some US power generation firms that manage to operate electricity facilities in China whereas some have to abort. Using cross-case analysis, patterns emerged illustrate how two groups of entrants manage key resources differently.

Keywords: Market Entry, Resource Dependency, US Power Generation Sector, China