| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1002261 | Journal of World Business | 2009 | 11 Pages |
Abstract
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.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Lin Cui, Fuming Jiang,