The influences of governance quality on equity-based entry mode choice: The strengthening role of family control

2014 ◽  
Vol 23 (5) ◽  
pp. 1008-1020 ◽  
Author(s):  
Yi-Chieh Chang ◽  
Ming-Sung Kao ◽  
Anthony Kuo
Keyword(s):  
Mode Choice ◽  
Entry Mode ◽  
Family Control ◽  
Entry Mode Choice ◽  
Governance Quality

How cultural distance influences entry mode choice: The contingent role of host country's governance quality

2012 ◽  
Vol 65 (8) ◽  
pp. 1160-1170 ◽  
Author(s):  
Yi-Chieh Chang ◽  
Ming-Sung Kao ◽  
Anthony Kuo ◽  
Chih-Fang Chiu
Keyword(s):  
Cultural Distance ◽  
Mode Choice ◽  
Entry Mode ◽  
Entry Mode Choice ◽  
Governance Quality

How family control influences FDI entry mode choice

2013 ◽  
Vol 19 (4) ◽  
pp. 367-385 ◽  
Author(s):  
Ming-Sung Kao ◽  
Anthony Kuo ◽  
Yi-Chieh Chang
Keyword(s):  
Joint Ventures ◽  
Mode Choice ◽  
Entry Mode ◽  
Environmental Uncertainty ◽  
Listed Companies ◽  
Family Control ◽  
Empirical Results ◽  
Entry Mode Choice ◽  
Perceived Environmental Uncertainty ◽  
Wholly Owned Subsidiaries

AbstractThis study investigates how family control influences entry mode choice between joint ventures and wholly owned subsidiaries. Based on past studies revealing family-controlled firms’ unique concerns regarding the preservation of socioemotional wealth, the researchers posit that, firms with higher family control respond more drastically to perceived environmental uncertainty when choosing their entry mode. The researchers hypothesize that, when perceiving high environmental uncertainty, firms with higher versus lower family control are more likely to choose joint ventures. However, when perceiving low environmental uncertainty, firms with higher versus lower family control tend to choose wholly owned subsidiaries. The empirical results obtained from a sample of 1,644 investments undertaken by publicly listed companies in Taiwan support the hypotheses.

Chinese Firms’ Outward FDI Entry Mode Choice: The Role of Ownership and Network

2013 ◽  
Vol 1 (1) ◽  
pp. 108-124 ◽  
Author(s):  
Bai Tao ◽  
Jin Zhanming ◽  
Xiaoguang Qi
Keyword(s):  
Exploratory Study ◽  
Joint Venture ◽  
Mode Choice ◽  
Entry Mode ◽  
Developed Countries ◽  
Outward Fdi ◽  
Entry Modes ◽  
Chinese Firms ◽  
Entry Mode Choice

What determines the Chinese firms’ outward FDI (foreign direct investment) entry mode choice, and do they behave differently from the firms from developed countries? To answer this question, this exploratory study firstly summarizes the attributes of the FDI entry modes, including greenfield investment, acquisition, and joint venture. Further based on the different attributes of these three modes, we analyze how Chinese firms choose the entry mode from the role the ownership and network perspectives, which are the important characteristics of Chinese firms.

Governance, privatization and foreign direct investment

2018 ◽  
Vol 9 (4) ◽  
pp. 569-586
Author(s):  
Dongling Cai ◽  
Leonard Fengsheng Wang ◽  
Xiaokai Wu
Keyword(s):  
Social Welfare ◽  
Host Country ◽  
Foreign Firm ◽  
Mode Choice ◽  
Entry Mode ◽  
Mixed Duopoly ◽  
Economic Governance ◽  
Content Type ◽  
Entry Mode Choice ◽  
Optimal Degree

Purpose The purpose of this study is to investigate the interplay between economic governance and privatization, and how these two instruments affect the entry mode choice of the foreign firm and the social welfare of the host country. Design/methodology/approach This study constructs a mixed duopoly model wherein one domestic public firm competes with a foreign firm and investigates the influence of economic governance investment on the domestic government’s optimal degree of privatization choice and the foreign firm’s entry mode choice. Findings This study shows that (1) better economic governance enhances the effect of privatization on output, thus resulting in a lower degree of privatization; (2) the optimal privatization policy of the domestic government is partial privatization irrespective of the foreign firm’s entry mode choice; (3) with optimal investment by the domestic government on economic governance, the optimal degree of privatization is higher under FDI than export, and the host-country welfare is also higher under FDI. In particular, this study demonstrates that better economic governance decreases the threshold of the degree of privatization when the foreign firm switches from export to FDI, implying that better economic governance stimulates the foreign firm to undertake FDI in the host country. Practical implications The findings shed some light on both the mixed ownership reform of the SOEs in China and attracting foreign capital inflow to improve the host country’s social welfare. Originality/value To the best of the authors’ knowledge, this study constitutes the first attempt to build a theoretical framework to explore how the interactions between economic governance and privatization influence the entry mode choice of the foreign firm.

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