A study on the Entry Mode of Taiwanese Franchise Investments in Southeastern China

• Main Authors: Shu-hua Huang, 黃淑華
• Other Authors: Pei-hsun Wu
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/63573735876103118794

碩士 === 國立高雄第一科技大學 === 行銷與流通管理所 === 91 === Within the decade ranging from 1990 to 2000, China’s GDP has maintained an average growth rate of 10.1%. China’s economic growth has been increasing at a steadfast manner such that, in 2001, its GDP ranked sixth globally and first among developing countries. However, in an effort to maintain China’s economic growth rate with insufficient domestic demand and diminishing export activities, it is imperative that China focus its effort in expanding its domestic market. In other words, developing China’s service industry is government’s immediate concern and the target retail sales for the 10th Five-Year-Plan is 700 billion Renminbi. During the post-WTO years, China will expand its foreign investments to include finance, insurance, retailing and service industries. This research is based on eclectic theory analyzing the effect of ownership, internalization and location advantages on the choice of entry mode. The scope of this research is limited to the Taiwanese owned franchise investments in Southeast China. The research results show that Taiwanese franchisers do not prefer the current mode of investments and the results also confirm that the cross-country experience, internalization ability, market potentiality, political and economy stability has significant influence on the selection of entry mode. The results also support the application of eclectic theory to research on entry mode of various investments.