The entry-mode decision of Chinese outward FDI: Firm resources, industry conditions, and institutional forces

Lin Cui; Fuming Jiang; Bruce Stening

doi:10.1002/tie.20425

The entry-mode decision of Chinese outward FDI: Firm resources, industry conditions, and institutional forces

Lin Cui^*, Fuming Jiang, Bruce Stening

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

57 Citations (Scopus)

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.

Original language	English
Pages (from-to)	483-499
Number of pages	17
Journal	Thunderbird International Business Review
Volume	53
Issue number	4
DOIs	https://doi.org/10.1002/tie.20425
Publication status	Published - Jul 2011

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10.1002/tie.20425

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The entry-mode decision of Chinese outward FDI: Firm resources, industry conditions, and institutional forces

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