Foreign entry mode of business group''s subsidiary: An empirical study in Taiwan

• Main Authors: Yu-Chin Huang, 黃于芹
• Other Authors: Cher-Hung Tseng
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/72403975220656170441

碩士 === 義守大學 === 管理科學研究所 === 92 === The entry mode researches mostly focused on the firm-level determinants, few examined the possibility of the group-level determinants. Business groups are a special type of enterprise system existing in the Far-Eastern economy area. The influence of business groups on economic scale is becoming increasingly important in Taiwan, the proportion of GNP shared by business groups grew from 24.16% in 1970 to 84.04% in 2001. Examining the possibility of the group-level characteristics on the foreign entry mode choice of business group’s subsidiary is meaningful in Taiwan. Using secondary data analysis, this research explores the possibility of the group-level characteristics, including group advantage, top management team demography, and the ownership structure of business group, on the foreign entry mode choice of business group’s subsidiary. The results reveal that the foreign entry mode choice is significantly influenced by business group’s characteristics, including business group size, age, and its top management team demography. Specifically, older or smaller business groups, or those business group whose top management team has higher degree of age heterogeneity, are more likely to choose joint venture mode to entry foreign market. This study provides an understanding of the possible relationships between business group characteristics and the entry mode choice of business group’s subsidiary. The results also provide a valuable reference in entry mode research. Furthermore, it points the importance of the group-level characteristics in the internationalization decisions.