Thesis (MComm)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: The signing of the US-China bilateral trade agreement in November 1999 paved the way for
the People's Republic of China (hereafter China) to ascend to World Trade Organisation as a
member. China's bid to become part of the World Trade Organisation (WTO) renewed
foreign investor interest after a decade of growth in foreign direct investment (FDI) in China.
An analysis of FDI to China confirms that foreign firms take an evolutionary approach to
enter the Chinese market place. Since the opening of the economy to foreign investors in
1978, foreign enterprises shifted their utilisation of entry modes from contractual joint
ventures (CJV), to equity joint ventures (EJV) and since 1994 many entered China without
the help of a local partners through wholly foreign owned enterprises (WFOE's). Problems
and frustration with joint venture partners gave rise to the growth in WFOE's. However EJV's
are still superior in profitability and market share to the WFOE. Foreign investors need
guidance in selecting the most appropriate entry mode. However, entry mode frameworks
and models offered in literature are contradictory and fragmented.
Entry mode alternatives in China can be represented on a continuum of control. CJV's and
minority EJV's represent the lowest level of control or ownership while the WFOE, the
highest level of control. This study proposes that the entry mode decision can evaluated in
terms of the level of ownership that a foreign investor should adopt in a foreign invested
enterprise (FIE).
Turning to the theoretical foundations of entry mode choice, the transaction cost-, eclectic-.
resource based -, strategic behaviour -, institutional- and evolutionary theories are integrated
into a framework from which entry mode can be considered. From its theoretical foundations
entry mode determinants are reviewed and propositions made regarding the impact of each
determinant on the ownership level in a FIE.
A review of and application of the framework to the Chinese business environment resulted
in the market entry mode decision framework for foreign investors in China (MEMOFFIC).
The MEMDFFIC suggest a phased external-, internal-, partner and project analysis when
considering entry mode choice. China's high market potential, experience in attracting FDI
as well as high level of opportunism and weak intellectual property protection are proposed
to motivate foreign investors to adopt high ownership levels when entering into China. / AFRIKAANSE OPSOMMING: Die ondertekening van 'n bilaterale handelsooreenkoms deur die VSA en China in November
1999 het die weg gebaan vir die Volksrepubliek van China (hierna "China" genoem) om
lidmaatskap van die Wêreldhandelsorganisasie (WHO) te verkry. China se pogings tot
deelname aan die Wêreldhandelsorganisasie het die belangstelling van buitelandse
beleggers laat opvlam na 'n dekade van groei in direkte buitelandse belegging in China.
'n Ontleding van direkte buitelandse belegging in China bevestig dat buitelandse firmas 'n
evolusionêre benadering volg om tot die Chinese mark toe te tree. Sedert die oopstelling van
die ekonomie vir buitelandse beleggers in 1978 het buitelandse ondernemings hul
toetreemeganismes verskuif van kontraktuele gesamentlike ondernemings na ekwiteit
gesamentlike ondernemings, en sedert 1994 het talle van hulle China binnegegaan sonder
die hulp van plaaslike vennote deur middel van ondernemings ten volle in buitelandse besit.
Dit was probleme en frustrasies met vennote in gesamentlike ondernemings wat tot die
uitbreiding van laasgenoemde tipe ondernemings gelei het. Tog is billike gesamentlike
ondernemings nog steeds winsgewender as ondernemings ten volle in buitelandse besit en
geniet ook 'n groter markaandeel. Buitelandse beleggers het 'n behoefte aan praktiese
leiding in die keuse van die geskikste toetreemeganisme, aangesien toetreeraamwerke en
-modelle wat in die literatuur voorgehou word, mekaar dikwels weerspreek en ook
gefragmenteer is.
Daar is wel toetreevlakalternatiewe in China op 'n kontinuum van beheer. Kontraktuele
gesamentlike ondernemings en kleiner ekwiteit gesamentlike ondernemings verteenwoordig
die laagste vlak van beheer of eienaarskap, terwyl daar by die ondernemings ten volle in
buitelandse besit die hoogste vlak van beheer bestaan. In hierdie studie word voorgestel dat
die toetreevlak besluit geëvalueer kan word ingevolge die vlak van eienaarskap wat 'n
buitelandse belegger behoort te aanvaar in 'n buitelandse beleggingsonderneming.
Wat betref die teoretiese grondslag van keuse van toetreevlak, word die transaksiekoste-,
eklektiese, bron-, strategiesegedrag-, institusionele en evolusionêre teorieë geïntegreer in 'n
raamwerk vanwaar toetreevlak oorweeg kan word. Vanuit die teoretiese grondslag word
toetreevlakdeterminante geëvalueer en voorstelle gemaak oor die impak van elkeen op die
eienaarskapvlak in 'n buitelandse onderneming.
'n Oorsig en toepassing van die raamwerk op die Chinese sake-omgewing het gelei tot die
marktoetreevlak-besluitnemingsraamwerk vir buitelandse belegg.ers in China. Volgens die
raamwerk word voorgestel 'n gefaseerde eksterne, interne, vennoot- en projekanalise
wanneer die manier van toetrede oorweeg word. China se hoë markpotensiaal, ervaring van
die lok van direkte buitelandse belegging asook hoë vlak van opportunisme en swak
beskerming van intellektuele eiendom moet gesien word as aansporing vir buitelandse
beleggers om by toetrede tot China hoë vlakke van eienaarskap te aanvaar.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52071 |
| Date | 03 1900 |
| Creators | Agenbag, Eben Haezer Gerhardus |
| Contributors | Leibold, M., Stellenbosch University. Faculty of Economic & Management Sciences. Dept. of Business Management. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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