Abstract
Based on an integrated theoretical framework of the determinants of foreign direct investment (FDI) entry mode decisions, comprising the perspectives of strategic behavior, transaction costs, organizational capabilities, and institutional influence, we first conducted a pilot investigation of ten Chinese multinational corporations (MNCs) with the aim of validating the framework. This was followed by a survey of 138 Chinese MNCs which examined the factors that affected those firms� FDI entry mode choice between wholly owned subsidiary (WOS) and joint venture (JV). The results suggest that the FDI entry mode choices of Chinese MNCs do not differ from those of Western or developed country MNCs from either an institutional or transaction cost perspective. However, there are major differences between Chinese and Western MNCs from an organizational capability and a strategic behavior perspective. The implications of these findings are discussed, focusing on the decision-making process used by Chinese MNCs in their FDI entry mode choices.
| Original language | English |
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| Title of host publication | Proceedings of the Academy of International Business Annual Meeting 2008 |
| Editors | John Cantwell & Tunga Kiyak |
| Place of Publication | USA |
| Publisher | Academy of International Business |
| Pages | 1-36 |
| Edition | Peer Reviewed |
| Publication status | Published - 2008 |
| Event | Academy of International Business Annual Meeting 2008 - Milan Italy Duration: 1 Jan 2008 → … |
Conference
| Conference | Academy of International Business Annual Meeting 2008 |
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| Period | 1/01/08 → … |
| Other | June 30-July 3 2008 |