Entry Modes of Chinese MNEs?An Empirical Test Based on Firm-Level Data

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Title:	Entry Modes of Chinese MNEs?An Empirical Test Based on Firm-Level Data
Authors:	Hsin-I Chang
Contributors:	Department of International Business
Keywords:	Mainland China;OFDI;mainland;test;Entry Mode
Date:	2009
Issue Date:	2009-11-16 11:34:09 (UTC+0)
Publisher:	Asia University
Abstract:	Since the initiation of the ?Open-Door? policies in the late of 1978, Mainland China has successfully attracted significant amount of Foreign Direct Investment (FDI) to China. According to the World Investment Report (2007) published by the United Nations Conference on Trade and Development (UNCTAD), Mainland China becomes one of the biggest countries in the terms of FDI inflow. On the other hand, Mainland China has gradually developed an important investor in Outward Foreign Direct Investment (OFDI) for a period of time. Via the encouragement and support of a serial of policies (named ?go global?), Chinese multinational enterprises (MNEs) invest heavily in overseas markets. The main purpose of this thesis attempts to comprehensively understand mainland China?s OFDI in terms of firm-level data. Unlike most existing studies, we investigate 219 China?s outward FDI projects from 1995 to 2008 and we delve deeply into the determinants of China multinational enterprises? entry modes by means of the Logistic Regression Model. We test three hypotheses: Hypothesis I, when the more parent company international experience, the more inclined to sole proprietorship to overseas investment in foreign countries. Hypothesis II, when the more parent company of the size is bigger, the more inclined to sole proprietorship of overseas investment in foreign countries. Hypothesis III, when the more parent company scale of investment, the more inclined to joint venture of overseas investment in foreign countries.We find that international experiences and the size of firm have significantly effects on China?s MNEs? entry mode choice when they invest directly in foreign countries. From the international experience, enterprises foreign investment to the investment if there is such a rich experience of more to a sole proprietorship entry mode. On the other hand, from company of the scale, the larger scale, the more inclined to sole proprietorship entry mode in foreign investment.
Appears in Collections:	[Department of International Business] Theses & dissertations

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