Abstract

This exploratory study investigates the subsidiaries of transnational companies operating in China with institutional change as a background. Through the institutional perspective, I explored the actors’ work during the gradual institutional change in China. I investigated the research questions of how the institutional change in China influences the operation of transnational companies' subsidiaries, as well as how the transnational companies strategically respond to institutional change. adopted a qualitative method, the data collected from case studies of three subsidiaries operating in China supported the investigation of the research questions. In the research, I explored the basic elements of institutional change, such as formal and informal institutions and the government’s role in influencing the subsidiaries operating in China; I also found that the subsidiaries of transnational companies can respond actively and strategically to the institutional environment in China through their institutional work.
It assists managers who engage in international business in better understanding the specific business environment in an emerging country and better implementing business strategies; it also enriches the study of institutional work in developing and transitional economies context.