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Asset specificity, culture, experience, firm Size and entry mode strategy: Taiwanese manufacturing firms in China, South‐East Asia and Western Europe

Ming‐Tien Tsai (Associate Professor in the Faculty of Business Administration at National Cheng Kung University in Tainan, Taiwan)
Yung‐Ming Cheng (Assistant Professor in the Faculty of Business Administration at Chaoyang University of Technology, Taichung, Taiwan)

International Journal of Commerce and Management

ISSN: 1056-9219

Article publication date: 30 November 2004

Abstract

This study examines the entry mode and ownership strategies in China, South‐East Asia and Western Europe made by manufacturing firms in Taiwan. The results find that when the larger, high R&D and high advertising intensive Taiwanese manufacturing firms invest in China, South‐East Asia and Western Europe, they would be likely to choose the greenfield‐WFOE entry. On the other hand, when these firms have the most foreign investing experiences and the longest investing history in China, South‐East Asia and Western Europe, the acquisition‐WFOE entry would tend to be preferred. Finally, this study proposes relevant implications for practice in the conclusion.

Keywords

Citation

Tsai, M. and Cheng, Y. (2004), "Asset specificity, culture, experience, firm Size and entry mode strategy: Taiwanese manufacturing firms in China, South‐East Asia and Western Europe", International Journal of Commerce and Management, Vol. 14 No. 3/4, pp. 1-27. https://doi.org/10.1108/10569210480000181

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited