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The Entry Strategy of Taiwanese Firm¡¦s Foreign Direct Investment in China

In1987, the Government released the law about restricting people to cotact between Taiwan and China, and the trade between Taiwan and China became more and more important. With the trend of economic community in globe and the industrial environment in Taiwan changed, the Multinational Enterprises (MNEs) should think about them how to keep advantages in global competition. Internationalization is the best choice that can help Taiwanese enterprises promote their competitive position in the world. China is a developing market and a lot advantages, such as rich resources and cheaper labors. Above all, China has become the major location of Taiwanese firm¡¦s foreign direct investment.
Compared with the process of MNEs located in North America/European Unit (developed countries, DC), the international process of Taiwan¡¦s MNEs is very different with in other countries. This is interested topic to investigate the entry strategies of Taiwanese firm¡¦s FDI in China. Focused on China, this thesis try to find out the model of entry mode and entry timing. The two basic types of entry mode are wholly owned subsidiary (WOS) and joint venture (JV). This study also defined the FDI timing of 1993 is the intermediary to differentiate early entrant from latter entrant.
The study collects 48 effective cases from electronics and non-electronics industries. The analytical technique used in this research includes descriptive statistics, factor analysis, cluster analysis, bivariate correlations, Multivariate Analysis Covariate of Variance (MANCOVA) and logistic regression. The study finds that the strategic roles of the MNEs have significant influences on the choice of entry mode. With different strategic motivations, the type of entry mode and the timing of entry are also difference. The relationship between entry mode and entry timing is not significant. In the view of global logistic management, Taiwan¡¦s MNEs will be an early entrant in China.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0620101-234957
Date20 June 2001
CreatorsTu, Cheng-Ching
ContributorsCher-Min Fong, Feng-lee Lin, Hsien-Jui Chung, Hsien-tang Tsai
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0620101-234957
Rightsrestricted, Copyright information available at source archive

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