Abstract: In our globalized world companies that want to internationalize and go to a new market should consider different factors, if they want to be successful. Institutional adaptation is a vital part of success or failure of the globalization process. The market entry process of western Multinational Companies (MNCs) into China, shows different adapting processes, compared to when entering western country markets. Establishing an MNC in China is more time consuming, as a lot of social and non-business actors, and activities will be involved in the process.

Purpose - The purpose of this study is to explore the process of adaptation of western MNCs to eastern institutional environment, with a focus on China. How does western MNCs operating in China adapt to the eastern institutional environment of China?  

Method - This is a qualitative single case study with three interviews as primary sources of data.

Findings – Government mandates are key factors to any organization whether local or otherwise. Merging with a local company helps to adapt better to the new environment. General cultural norms have a higher impact into the adaptation process.

Conclusion - The research conducted shows how having knowledge of the different aspects of the environment and knowing how to adapt to these differences is crucial for the success of a firm. Husqvarna Group adapts to the host environment by means of their code of conduct, adaptation of a foreign organizational structure and accepting stricter mandates put forth by the government along with stricter channels of communication.