Industry Attractiveness, Firm Competence, and International Investment Performance in a Transitional Economy.

Building upon the theoretical foundation provided by the international economics and industrial economics literature, this study examines the multivariate and univariate effects of industry structure attributes and firm competence components on the performance of foreign-funded enterprises operating in a transitional economy (Peoples Republic of China). It is found that industry attractiveness and firm competence are both critical to international investment performance. It is also observed that different industry and firm-level variables influence differentially the various dimensions of performance. Copyright 1998 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research