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Abstract
Internationalization of operations constitutes an important part of the global
forest industry integration process over recent decades. As a resource based
industry, drivers of corporate expansion have been defined as both resource
seeking and market seeking in the global context. China is regarded as one of
the most dynamic countries with development potential concerning both
resources and markets to attract foreign direct investment (FDI). From 2004 to
2008, FDI in the forest industry in China has doubled and FDI projects have
maintained around 550 cases annually. The high density of investments has
raised critical issues with respect to business ethics including corporate
environmental sustainable development and interactions with communities at
the local level. The aim of this study is to use a case study approach to
compare the process of FDI in the forest industry in China and to explore the
sustainability of operations from corporate governance viewpoint. Three case
companies headquartered in Europe, North America and Asia were chosen.
Corporate FDI strategies, financial performance, cooperation with local
community and stakeholder involvement were evaluated and compared.
Finally, managerial suggestions will be given case by case referring to the
corporate sustainable operations in China.