The Impact of Fit between Determinants and Entry Mode on Performance:Evidence from China
Although international business researchers have extensively studied entry mode choice, only a few studies have examined how the fit between anticipated entry mode by determinants and the actual choice of entry mode influence firm performance.We test the predictions of transaction cost theory, institutional theory, culture, and OLI on entry mode decisions by analyzing approximately 17,000 foreign entries in seven industries into China from 1979 to 2004.Unlike past studies that have viewed entry mode choices narrowly, we use a broader set of factors that influence entry mode choices as well as consider more entry modes.Specifically, we study the impact of determinants, such as a host countrys experience, cultural distance, industry asset intensity, resource commitment and location, and how they affect the following entry modes choices : wholly owned enterprises, equity joint ventures, contractual joint ventures and joint stock companies.Furthermore, we examine how the fit between these determinants and entry modes affect firm performance.Findings indicate that firms who choose entry modes based on cultural distance and location advantages outperform other firms.
Foreign market entry Performance Transaction cost theory Cultural distance Institutional theory OLI China
Li Ruihai
Shanghai Lixin University of Commerce, Shanghai, China
国际会议
The 5th Conference on Chinas Economic Operation Risk Management(2011`Shanghai)(第五届中国立信风险管理论坛)
上海
英文
120-134
2011-11-04（万方平台首次上网日期，不代表论文的发表时间）