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Multilevel Analysis of Ownership Mode Strategy in China

  • Yi Wang
  • Jorma Larimo
  • Huu Le Nguyen
Part of the The Academy of International Business book series

Abstract

Foreign direct investments’ (FDIs) entry mode strategy has received considerable attention from researchers in both the international business (IB) and the strategic management field (Zhao et al., 2004; Brouthers and Hennart, 2007; Morschett et al., 2010; Slangen and Hennart, 2015). Ownership mode strategy (OMS) is one of the most important dimensions of FDI entry mode strategy (Endo et al., 2014). Multinational enterprises (MNEs) can choose between wholly owned subsidiaries (WOS) and joint ventures (JVs). The level of ownership is a challenging strategic decision, as it determines the level of resource a firm must commit to foreign markets, the degree of risk a firm must bear in the target country, and the extent of control a firm can excise over its foreign subsidiary (Anderson and Gatignon, 1986; Hill et al., 1990). Furthermore, OMS has important implications for the survival and performance of foreign subsidiaries (Papyrina, 2007; Kim et al., 2010).

Keywords

Foreign Direct Investment International Experience Cultural Distance Entry Mode Foreign Subsidiary 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Yi Wang, Jorma Larimo and Huu Le Nguyen 2016

Authors and Affiliations

  • Yi Wang
  • Jorma Larimo
  • Huu Le Nguyen

There are no affiliations available

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