Revisit the CD Paradox in Entry Model Choice: Toward the Perspective of Strategic Fit
DOI:
https://doi.org/10.33423/ajm.v18i3.77Keywords:
Management, Business, cultural distance, Entry Model Choice, EconomicAbstract
The effect of cultural distance (CD) on the entry mode choice (EMC) has been intensively studied but the empirical results are mixed. This study adopts the strategic fit perspective to examine how firms’ strategic motives and technological ownerships may influence the EMC in face of different cultural distances. Analyzing Taiwanese outward FDI cases from 2004 to 2007, this study found that firms entering the culture-distant countries would choose the wholly-owned subsidiary (WOS) mode when emphasizing more about the protection of technological competence than market expansion, or else would choose the joint-venture (JV) mode when the market expansion is prioritized.
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Published
2018-09-01
How to Cite
Yeh, C. P. (2018). Revisit the CD Paradox in Entry Model Choice: Toward the Perspective of Strategic Fit. American Journal of Management, 18(3). https://doi.org/10.33423/ajm.v18i3.77
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