Year: 2007
Type: conference-paper
Abstract: Based on an integrated theoretical framework comprising the perspectives of strategic behaviour, 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 some aspects of a strategic behaviour perspective.The implications of these findings are discussed with a focus on the decomposition and rationalization of decision-making process of FDI entry mode choices.
Authors: Lin Cui, Fuming Jiang, Bruce W. Stening
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2145561264