THE DECISION CRITERIA FOR THE OWNERSHIP CONTROL ENTRY MODE FOR TAIWANESE MANUFACTURING FIRMS IN THE UNITED STATES: AN APPLICATION OF THE LOGIT MODEL AND AHP

Abstract

The purpose of this paper is to study the ownership entry mode decision in the United States made by firms in Taiwan. A total of 398 companies were sampled and included in the mail survey, with usable responses received from 105. We find the asset specificity and the strategic investment motivations are the most important decision criteria for the ownership control entry mode choice for Taiwanese manufacturing firms in the United States. When the stronger the U.S. strategic investment motivations and the higher the asset specificity, the higher the likelihood of Taiwanese manufacturing firm's entry through full‐ownership control mode. Finally, in our conclusion, we propose relevant implications for practice and research.

Citation

Tsai, M. and Cheng, Y. (2002), "THE DECISION CRITERIA FOR THE OWNERSHIP CONTROL ENTRY MODE FOR TAIWANESE MANUFACTURING FIRMS IN THE UNITED STATES: AN APPLICATION OF THE LOGIT MODEL AND AHP", International Journal of Commerce and Management, Vol. 12 No. 2, pp. 45-71. https://doi.org/10.1108/eb047443