Entering China : an operations management case study

Market forces and international competition are driving companies to reduce costs. The operations management issues experienced by 50 Australian companies when investing in China were examined. Many experiences were found to be common to most of the participant's industries. Relationships with government, associations, local partners and members of supply chains were considered highly important. Levels of technology in China were not considered to be a significant issue. Access to staff with sufficient technology training (particularly for product development) and technology implementation was an important issue. The paper presents a model relating the various operations management issues identified to one another.