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A Study of Foreign Entry Mode of Taiwanese Company in European Markets¡ÐA Case Study of U Company Entering French and Dutch Markets

In recent years, Taiwanese companies have enjoyed a more positive expansion in overseas markets due to increasing internationalization. In 2011, Taiwan's total foreign trade set a new record becoming the EU's 15th largest trading partner. The EU is Taiwan's largest source of foreign investment, but Taiwan only sees the EU as a secondary market for foreign investment and has yet to take full advantage of the opportunity to invest in the EU market. The EU is the world's largest single market which is home to a population of nearly 500 million people, and the EU is a major export market for more than 130 countries and is the market which gets the world's largest overseas investments. However, examining the ranking of the trade ratios of Taiwan and EU trading partners, Taiwan's direct investment in the EU is too low.
The purpose of this study is to investigate foreign entry mode of Taiwanese companies in European Markets and the reasons affecting foreign entry mode choice, to identify the key factors considered by Taiwanese companies in deciding to enter the European market, to explain how to assess the most appropriate entry mode for Taiwanese companies entering the European market, and to explain why Taiwanese companies¡¦ average investment in the European market is low. According to the framework of this study, the first step is to explore the influence of the motivation of internationalization, host country environmental factors, and corporate identity for Taiwan companies when choosing European market entry mode. The second step would be to explore the process of development and changing reasons concerning exports, exclusive agents, and joint venture subsidiary entry mode. Expecting there would be some findings can be summed up through the literature review, secondary data, and interview providing Taiwan companies considering the European market as a reference.
The results of this study show that the motivation of internationalization, host country environmental factors, and corporate identity will not only affect Taiwanese companies in choice of the European market entry mode, but also could be analyzed in which two or more factors to assess the most suitable for its own entry modes and strategies to improve the success rate of entering overseas markets. As cases where the Taiwanese companies¡¦ European market investment is low, this situation could be explained by motivation of internationalization and corporate identity. Since Taiwan companies are mostly small and medium-sized enterprises which lack of adequate resources and capabilities, but want to use the quickest way to enter the vast overseas markets, the export model is the mode that can make Taiwan companies reach its purpose of entering overseas market in the shortest amount of time.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0718112-204229
Date18 July 2012
CreatorsLee, Chia-ling
ContributorsHsien-tang Tsai, Pei-how Huang, Cher-Min Fong, Cher-Hung Tseng
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-0718112-204229
Rightsuser_define, Copyright information available at source archive

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