The Relationships among Foreign Direct Investment Motivation, Perceived Environmental Risk, and Entry Mode: A Multilevel Study

• Main Authors: Shih-hsuan Chen, 陳詩軒
• Other Authors: Ming-chang Huang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/70790392436923052614

碩士 === 靜宜大學 === 企業管理研究所 === 98 === There are numerous efforts to explore the relationships among foreign direct investment motivation, perceived environmental risk and entry mode. Nested variance which caused by single analytic level can be an important factor to result in inconclusive finding. Based on transaction cost theory and strategic behavior perspective, this study introduces hierarchical linear modeling to investigate the cross level direct effect of perceived environmental risk upon entry mode and the interactive effect upon the relationship between FDI motivation and entry mode. Evidence from Taiwanese 1273 FDI in 57 cities of mainland China indicates that market seeking has positive effect on joint venture entering. To seek resources, firms can choose wholly owned subsidiary as their entry mode. The more environmental risk that firms perceived, the more likelihood that firms will choose joint venture as their entry mode. When perceived environmental risk is high, there are more propensities that firms will choose joint venture as their entry mode.