Navigating the Great Firewall: Decoding Google's Retreat from China's Tech Frontier

Abstract

Purpose: Many difficulties in the Chinese market make it tough for foreign companies to operate. Studying why Google failed globally can help us improve in international business strategy. This study is interested in figuring out the causes of Google’s failure in China and considers if the laws and society of China had something to do with it.

Methods Secondary research is conducted on this concept paper by examining certain literature about Google entering, running and leaving the Chinese market. Selecting and classifying literature was done mainly using factors like censorship, privacy, competition and the evolution of policies. All the data was examined by focusing on important challenges, both strategic and from the environment, that led to the creation of a model fo:r the failure of foreign tech businesses in China.

Results: Data from the literature shows that Google failed in China because it opposed Chinese censorship laws, did not meet the expectations of local regulators, faced stronger competition from Baidu and faced political pressure about managing user data. It explains how the combined conditions made Google quit and offers expectable outcomes for other foreign businesses trying to enter authoritarian digital markets.

Implications: The study gives international firms advice by connecting Google’s approach to running a business in China with the important parts of doing business in the country.

Originality: Authors think most research exploring Google’s global strategy mainly concentrates on its achievements in Western nations. The reasons for China’s failed revolution have not been well explained. This work helps to bridge the gap in research by looking at digital governance in a growing market setting.