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As one of the big emerging markets, China's enormous population and rapid increase in consumer spending have attracted many multinational corporations (MNCs). Meanwhile, the misconception of China as a homogeneous market often leads to difficulties in assessing market demand and enacting effective strategies. Examines the diversity among Chinese consumers across seven regional markets. Data from a national survey suggest that consumers from various regions are significantly different from one another in terms of purchasing power, attitudes, lifestyles, media use, and consumption patterns. MNCs need to take a cautionary approach when expanding into the inland regions, and must adapt to the local market conditions and devise sustainable strategies.

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In this study we examine the contingent relationship between R&D intensity and performance of international joint ventures (IJVs) in an emerging market context. Based on Teece's (1986) arguments regarding the appropriability of innovation, we identify two types of appropriability hazard related to IJVs’ R&D activities in this context: local-market-related and local-partner-related hazards. We argue that a positive relationship between R&D intensity and IJV performance is more likely to occur if these appropriability hazard can be mitigated. Results using a sample of manufacturing IJVs in China provide support for these arguments. We find that R&D intensity is positively related to performance in export market-focused IJVs but not in local market-focused IJVs. In addition, using a configuration approach, we find that R&D intensity is positively related to performance in IJVs that have an export market focus and in which the multinational companies (MNCs) have a majority ownership, but not in other market focus-ownership structure configurations. These findings contribute to our knowledge of R&D activities of MNCs’ overseas subsidiaries. Journal of International Business Studies (2007) 38, 944–960. doi:10.1057/palgrave.jibs.8400301

How to integrate the emerging consumer segments in transitional economies into multinational corporations’ global marketing strategies presents a significant challenge. An analysis of China's urban consumers based on a 1997 national survey reveals several market segments that are distinctive in their demographics, psychographics, lifestyles, media usage, and consumption patterns. The findings suggest that multinational corporations need to adapt to the local market conditions in China and other transitional economies.