A fuzzy hierarchy integral analytic expert decision process in evaluating foreign investment entry mode selection for Taiwanese bio-tech firms

The purpose of this study is to help bio-tech firms solve the foreign investment (FI) entry mode selection problem. This study combines the concepts of factor analysis, analytic hierarchy process (AHP), genetic algorithm (GA), and fuzzy integral to construct an entry mode selection approach.This study produces several interesting findings. (1) In the different investment entry modes, there are large differences in evaluation focus when investors select their entry modes. (2) For example, Taiwanese bio-tech firms entering mainland China consider merger and acquisitions to be the first priority, and followed by strategic alliances. This research shows that if the stock share holding is unlimited, Taiwanese bio-tech firms prefer to select a high stock share holding investing mode. (3) In various investment modes, the aspects of “Capital and Risk” and “Technology Ability” have the most consistent effect on entry mode selection.

Research highlights
► In different investment entry modes, there is large differences in evaluation focus when investors select their entry modes.
► For Taiwan bio-tech firms entering to mainland China consider merge and acquisitions to be the first priority, and follows by strategic alliances.
► This research is shown that if the stock share holding is unlimited, Taiwan bio-tech firms prefer to select a high stock share holding investing mode.
► In the various investment modes, the aspects of ”Capital and Risk” and ”Technology Ability” have the consist effect of the entry mode selection.