Determinants of MNC's entry mode strategies in China

Sammanfattning: Since the economic reform launched in 1980s, massive institutional change hastaken place in China and resulted in an increasingly liberalized governmentregulations toward business operations, which to a certain extent set foreign MNCsfree to pursue their preferred entry mode strategies. This paper analyzes how threeMNCs that are operating in China, evaluate the influences and significances of thefactors on their entry mode strategies since they first came to China. The empiricalresults show that institutional factor carried the most weight than other factors onentry mode choice for initial entry; while for a later period of development, firmspecific factors offered more explanatory power with regard to the changes of entrymode strategies. Moreover, factors of company strategy, network building and theperformance of local partners were vitally concerned