Abstract
Though overlooked in the literature, the timing of foreign direct investment is so important to the success of international expansion that global market leaders are often early movers. Today the opening up of emerging economies, most notably China, has presented many pre-emptive investment opportunities to the Western multinationals. However, early-mover benefits often accrue at the expense of high risks and costs. In an effort to address this issue, this study investigates the economic implications, illustrates the strategy formulation framework, provides national survey results based on the Chinese market, and presents managerial lessons for international executives active at present in China as well as future investors in emerging markets.
