Entry Mode Choices and Overseas Business Performance: Evidence from the Chinese Multinational Enterprises

Zhang, Haibo; Wang, Jinmin

Abstract

This article adopts the extended transaction cost theory to analyze the entry mode choices of Chinese multinational enterprises and their effects on overseas business performance. Theoretical hypotheses, which are developed from the perspectives of asset specificity of parent companies and investment environment differences of host countries, are tested with sample data of 406 overseas subsidiaries of Chinese multinational enterprises from 2015 to 2017. The empirical results show that the overseas subsidiaries of Chinese multinational enterprises whose entry mode choices can be predicted by the extended transaction cost theory usually perform significantly better than those whose entry mode choices cannot be predicted by the extended transaction cost theory.

Citation

Zhang, H., & Wang, J. (2021). Entry Mode Choices and Overseas Business Performance: Evidence from the Chinese Multinational Enterprises. Strategic Change, 30(6), 517-525. https://doi.org/10.1002/jsc.2473

• Journal Article Type: Article
• Acceptance Date: Oct 15, 2021
• Online Publication Date: Nov 1, 2021
• Publication Date: Nov 1, 2021
• Deposit Date: Nov 26, 2021
• Publicly Available Date: Nov 2, 2023
• Journal: Strategic Change
• Print ISSN: 1086-1718
• Electronic ISSN: 1099-1697
• Peer Reviewed: Peer Reviewed
• Volume: 30
• Issue: 6
• Pages: 517-525
• DOI: https://doi.org/10.1002/jsc.2473
• Keywords: entry modes, overseas business performance, Chinese multinational enterprises, extended transaction cost theory JEL CLASSIFICATION F21; F23; M16 2
• Public URL: https://nottingham-repository.worktribe.com/output/6789401
• Publisher URL: https://onlinelibrary.wiley.com/doi/abs/10.1002/jsc.2473
• Additional Information: This is the peer reviewed version of the following article: Zhang, H., & Wang, J. (2021). Entry mode choices and overseas business performance: Evidence from the Chinese multinational enterprises. Strategic Change, 30( 6), 517– 525, which has been published in final form at https://onlinelibrary.wiley.com/doi/abs/10.1002/jsc.2473. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.