The Effects of Cultural, Geographic and Institutional Distances on Foreign Investment Commitments in Taiwan - The Moderating Role of Local Experiences

• Main Authors: HUA,SIAO-LIN, 華筱琳
• Other Authors: CHEN,LU-JUI
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/xy93dr

碩士 === 銘傳大學 === 國際企業學系碩士班 === 104 === Attracting foreign investments and increasing the foreign investment commitments are crucial to Taiwan all the time, as the result we would like to investigate the factors which will affect foreign investment commitments. Past studies show that “distances” has been the central to international business research that will influence foreign investment decisions; on the other hand, the greater local experiences will affect the relation between distances and foreign investment commitments. This study examines how cultural, geographic and institutional distances between the home country and Taiwan influence the multinational enterprises (MNEs) on foreign investment commitments, and how local experiences moderate the effect of cultural, geographic and institutional distances. The study involves a questionnaire, using a sample of 33 subsidiaries in Taiwan of the multinational enterprises (MNEs). Empirical analysis is based on regression analysis to investigate the impact of distances on foreign investment commitments and moderating effect of the local experiences. Our results show that similar culture will positively strengthen foreign investment commitments, whereas similar institution will negatively strengthen foreign investment commitments. Our results also show that similar geographic distance will not significantly strengthen foreign investment commitments, and more local experiences will not significantly strengthen the relation between similar distances and foreign investment commitments.