Market segmentation,the relationship between enterprises and government,and nonlocal market expansion

Clc Number:


Fund Project:

  • Article
  • |
  • Figures
  • |
  • Metrics
  • |
  • Reference
  • |
  • Related
  • |
  • Cited by
  • |
  • Materials
  • |
  • Comments

    There are still market segmentations in China. The Chinese enterprises must break through these market segmentations to expand their markets. The prior studies mostly analyzed from macro factors focused on provincial level or state level. This study is the first to investigate firm's expansion nonlocal market under market segmentations from the perspective of the relationship between enterprises and government,and also firstly categorizes market segmentations (nonlocal market) to within province market (outside local city),outside province market and overseas market. This study examines the enterprises expanding nonlocal market with the survey data of the World Bank. The empirical results suggest that market segmentation impedes enterprise's nonlocal market expansion,but this is limited to within the province other than outside the province. The finding also shows that market segmentation is directional,namely it is easier for enterprises in area with serious local protectionism to expand nonlocal market. But this conclusion is only for domestic market rather than foreign market. Good relationship between enterprises and government is beneficial for enterprises to expand nonlocal market,but it is limited to markets outside the province rather than markets within the province and overseas markets. This study explains the probable reasons and implications to firms' practice.

    Cited by
Get Citation


Article Metrics
  • Abstract:
  • PDF:
  • HTML:
  • Cited by:
  • Received:
  • Revised:March 18,2019
  • Adopted:
  • Online: December 30,2019
  • Published: