TY - JOUR
T1 - FDI entry mode choice of Chinese firms
T2 - A strategic behavior perspective
AU - Cui, Lin
AU - Jiang, Fuming
PY - 2009/10
Y1 - 2009/10
N2 - This study investigates the determinants of foreign direct investment (FDI) entry mode choice between a wholly owned subsidiary and a joint venture by Chinese firms that invest overseas. We argue that the FDI entry mode choice of a Chinese firm is primarily influenced by the variables related to the firm's strategic fit in host industry and its strategic intent of conducting FDI. Using survey data of a sample of 138 Chinese firms, the results suggest that a Chinese firm prefers wholly owned subsidiary entry mode when it adopts a global strategy, faces severe host industry competition, and emphasizes assets seeking purposes in its FDI. A joint venture is preferred when the firm is investing in a high growth host market.
AB - This study investigates the determinants of foreign direct investment (FDI) entry mode choice between a wholly owned subsidiary and a joint venture by Chinese firms that invest overseas. We argue that the FDI entry mode choice of a Chinese firm is primarily influenced by the variables related to the firm's strategic fit in host industry and its strategic intent of conducting FDI. Using survey data of a sample of 138 Chinese firms, the results suggest that a Chinese firm prefers wholly owned subsidiary entry mode when it adopts a global strategy, faces severe host industry competition, and emphasizes assets seeking purposes in its FDI. A joint venture is preferred when the firm is investing in a high growth host market.
KW - Chinese firms
KW - Entry mode
KW - Foreign direct investment
KW - Joint venture
KW - Strategic behavior perspective
KW - Wholly owned subsidiary
UR - http://www.scopus.com/inward/record.url?scp=69549110523&partnerID=8YFLogxK
U2 - 10.1016/j.jwb.2008.11.004
DO - 10.1016/j.jwb.2008.11.004
M3 - Article
SN - 1090-9516
VL - 44
SP - 434
EP - 444
JO - Journal of World Business
JF - Journal of World Business
IS - 4
ER -