| Summary: | 碩士 === 國立交通大學 === 企業管理碩士學程 === 100 === Organizations looking to operate in international markets need to make the most important decision in order to select the best mode of entry choice into foreign markets. The incorrect choice of entry mode is likely to have severe long-term consequences for a firm, having a great impact on performance, competitive advantage and future business opportunities. A firm must assess before entering a particular market the potential factors that play a significant role during the process of decision making for the potential market selection. The following study analyzes the foreign direct investment decisions in relation of choice of entry mode of Taiwanese companies in the Electronics Manufacturing Industry. To conduct this study the Eclectic Framework of Dunning was used to identify the OLI factors (Ownership, Location and Internalization) that have influence on the decision making process of entry mode in the Chinese Market for this specific industry. Some outcomes of this study reveal that a wholly owned subsidiary mode is preferred by Taiwanese companies if a firm is large in size, if it possesses higher power assets; if the host market provides environment for cheap production factors and the political constraints are low and allow the firm to reach economies of scale. In this study throughout the ownership, location and internalization factors of the OLI model the preference for equity modes has been once again demonstrated.
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