Decoding Localization: A Comparison of Two Transnational Life Insurance Firms in China

Abstract

This chapter compares the localization strategies of two transnational life insurance firms in China. The argument is that localization is a relative concept, and highly dependent on how “local” is defined: What appears to be highly localized by one definition may actually be less so under another definition. The data presented show that a Sino-American insurer appears to be more localized than a Sino-German insurer when “local” refers to greater China (including Hong Kong and Taiwan, in addition to the People’s Republic of China). However, if the scope of “local” is narrowed to the People’s Republic of China, then the Sino-German firm actually appears to be more localized. Therefore, differences in the delineation of what counts as “local” result in different conclusions about the extent and the form of localization. This chapter adds to the literature on glocalization by demonstrating that those transnational firms which have gone through multiple levels of localization require relatively less effort to appear “localized” in a specific locale.