| Summary: | 碩士 === 國立東華大學 === 國際企業學系 === 98 === After 1979, the Chinese government initiated a policy of reform and opened up the economy, and planned a gradual transition from the previously used planned economy over to with the move to implement market economy. In the transition process, at the early stage of reform, the policy was first being implemented in the special economic zones. Coastal cities attracted foreign investment, and this had not only had an impact on the institutional environment and market environment, but resulted in high uncertainty. Moreover, the natural conditions, customs, and norms are different in sub-nations within China. It suggests that regional differences within a country are considered by foreign investors while making a entry mode of choice.
Consequently, in this research, institutional theory and transaction cost theory describe the entry mode choice of Taiwan's manufacturing firms investing in transitional economies in - China. The results are as follows: (1) under formal institutions, in which the government highly perfom opened policy , Taiwan firms prefer wholly owned subsidiaries. (2) Under informal institutions , imitation behavior has significantly influenced Taiwanese that firms prefer a wholly owned subsidiary .(3) High general transaction costs have significantly influenced Taiwanese firms that prefer a prefer wholly owned subsidiary .(4) Transaction costs theory can explain cultural distance has significalntly influenced Taiwanese firms’ entry mode of chice , but institutional theory cannot. (5) Regional differences have a significant impact on the relationship between the institutional environment and Taiwanese firms’ entry mode of choice .
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