Transaction Cost, Institutional Environment and Experience Influences on Entry Mode Choice and Performance

• Main Authors: Tsan-Ting Wu, 吳讚庭
• Other Authors: Chun-Chung Chen
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/61913357589813551254

碩士 === 元智大學 === 管理研究所 === 91 === In this study, we examine foreign market entry mode choice and firm performance for a sample of Taiwanese firms. By applying Logistic Regression Analysis and Multiple Regression Analysis, 52 firms are empirically analyzed. Findings of this research indicate that General Transaction Cost, Business Relatedness, Market Potential and International experience are significantly and positively correlated with wholly owned mode. On the other hand, Legal Restrictions of host country, Investment Risk with joint venture are significantly and positively correlated with joint venture mode. Examining mode performance measures, we attempt to determine if firms that select their entry mode based on Transaction Cost, Institutional Environment and International Experience factors perform better than firms that make other mode choices. We found that mode choice did matter. Firms whose mode choice are according to the prescription of the extended transaction cost model are more successful than those whose modes are selected otherwise. Implications for future research are discussed.