Study on the Entry Modes of Taiwanese Investment in China Base on the Impact Factors of Institutional Environment, Network Relationship, Transaction Cost, and Resources Characteristic

• Main Authors: Cheng-Chieh Yang, 楊程傑
• Other Authors: Su-Chuan Shih
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/31114544004265632564

碩士 === 靜宜大學 === 國際企業學系研究所 === 98 === In 2009, Taiwan government disclosed that 75% of foreign investment cases are in China. Governments on both sides of Taiwan Strait currently are struggling on the Economic Cooperation Framework Agreement (ECFA) to stabilize the trading relationship and to release the political tension. Under the current uncertain situation, companies to invest in China are so anxious for their entry modes to achieve their goals. This research studies the decision-making model for companies in selecting entry modes that integrated four major theoretical perspectives of international business: institutional environment, network relationship, resourced characteristic, and transaction cost. We designed a questionnaire with 55 questions. We employed software package of Structural Equation Modeling to analysis the collected data. Eight significant relationships between the decision variables are indentified. Then, we constructed a decision tree for Analytic Hierarchy Process to evaluate the relative importance of those the decision-making variables. The result showed that the variables of the four perspectives would have directly influence on the decision-making. Furthermore, causal relationships with latent variable, institutional environment would have directly influenced on the network relationship and transaction cost. Institutional environment has indirectly influence on the resource characteristics through network relationship. In addition, network relationship has directly influence on resource characteristics and transaction cost. Institutional environment uncertainty is the most critical variable than the others.