The entry-mode decision of Chinese outward FDI: Firm resources, industry conditions, and institutional forces
✍ Scribed by Lin Cui; Fuming Jiang; Bruce Stening
- Publisher
- John Wiley and Sons
- Year
- 2011
- Tongue
- English
- Weight
- 259 KB
- Volume
- 53
- Category
- Article
- ISSN
- 1096-4762
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✦ Synopsis
Abstract
How do Chinese firms make their entry‐mode decision for their outward investments? Based on the three theoretical perspectives that balance the “strategy tripod,” our study conducted empirical tests using survey data collected from outward‐investing Chinese firms. We found that the cost advantage of the investing firm and learning opportunities in the host industry have positive effects on the likelihood of a Chinese firm opting for wholly owned subsidiary against joint‐venture entry mode, while the market attractiveness of the host industry, host‐country restrictions, cultural barriers, and cognitive pressures have negative effects. © 2011 Wiley Periodicals, Inc.