碩士 / 淡江大學 / 產業經濟學系碩士班 / 97 / Base on the transaction cost theory, this study provides the first large sample empirical study of entry mode choice between WOSs and JVs for Taiwanese FDI in China. This study departs from previous researches in that it uses panel data and focuses on an analysis of the dynamic binary choice model that controls for state dependence of mode choice.
Empirical evidence suggests a strong state dependence, or habit persistence effect, between current and previous entry modes. Having WOSs in the previous period increases the probability that this entry mode will be chosen in the current period. However, there is also evidence to show that the degree of state dependence decreases if the entry mode in the previous period did not produce good parent firm’s performance. It seems to suggest that the adjustment of entry mode for foreign subsidiaries is related to the MNE’s global plans and strategies, rather than the subsidiary’s performance itself.
The hypothesized effects of transaction cost factors on entry mode choice are supported in a dynamic probit model when the model is appropriately estimated under the assumption of endogenous initial conditions. Specifically, empirical findings indicate that the probability of an MNE’s choice of WOSs is positively associated with the MNE’s total number of employees, relative size of the subsidiary (the amount of investment commitment), and technological capability (R&D intensity) of the entire business. It also increases as there are proprietary technology transfer from parent to subsidiary, vertical parent-subsidiary production relationship, diversification of foreign investment, and relational network connections. On the other hand, the probability of choosing WOSs decreases with an MNE’s international experience and the proportion of the subsidiary’s products sold to the local marke.
| Identifer | oai:union.ndltd.org:TW/097TKU05335013 |
| Date | January 2009 |
| Creators | Jing-Yun Chang, 張瀞云 |
| Contributors | 陳明園 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 36 |
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