The Influencing Factors of the Survival Rate of Chinese Overseas Subsidiary: A Case Study of Gree Electric Appliances (Thailand) Co., Ltd.

Abstract

Against the backdrop of intense global competition, the withdrawal of overseas subsidiaries by multinational corporations has become increasingly common. Therefore, it is worthwhile to investigate the factors that influence their survival rates. Entering 2025, Gree Electric Appliances (Thailand) Co., Ltd., a Chinese overseas subsidiary, further deepened its localization strategy by establishing a new wholly owned subsidiary to take full responsibility for sales and service in the Thai market. Therefore, exploring the influencing factors of the survival rate of Gree, holds important implications and provides valuable insights for similar enterprises. This study aimed to explore the influences of the host country’s institutional environment, organizational legitimacy, and opportunity attention allocation on the survival rate of Gree Electric Appliances (Thailand) Co., Ltd.
A quantitative research approach was adopted, and a questionnaire was designed and distributed to four key departments of Gree Electric Appliances (Thailand) Co., Ltd. that are closely related to subsidiary survival: Senior Management, Sales and Marketing Department, Manufacturing Department, and Finance Department, in order to collect first-hand data. The questionnaire data were analyzed using SPSS software to test the hypotheses and interpret the research findings. A total of 421 questionnaires were distributed to employees across the four departments in this study, and 386 valid responses were returned, resulting in an effective response rate of 91.7%. The findings revealed that host country’s institutional environment, organizational legitimacy, and opportunity attention allocation all have a significant influence on the survival rate of Gree Electric Appliances (Thailand) Co., Ltd. Among them, the influence of the host country’s institutional environment and organizational legitimacy is positive, while the influence of opportunity attention allocation is negative.
Finally, based on the results of the data analysis, this study puts forward the following suggestions: (1) enhancing investment guidance and conducting more in-depth institutional research; (2) dynamically adjusting ownership structures to align with the legitimacy level of the host country; and (3) making rational evaluations of opportunities and timely seizure of overseas investment opportunities

Keywords: survival rate, Chinese overseas subsidiary, Gree Electric Appliances (Thailand) Co., Ltd., host country’s institutional environment, organizational legitimacy, opportunity attention allocation