The entry mode choice of construction industry in China when facing the institution Of environment
Date Issued
2012
Date
2012
Author(s)
Yin, Hui-Wen
Abstract
This article investigates how the foreign investments of contractor enterprises succeed in China market mainly on the perspective of the institutional environment. The entry mode choice in emerging country is different from developed country that the institutional environment may have some isomorphic pressure to the decision maker that they may make some not so rational judgments.
This research follows the case study method by Eisenhardt (1989.) We interviewed 30 foreign enterprises in construction industry in China and choose contractor as the main samples to analyze the process how they entered China, and the operational changes during those years.
We discover how institutions in China influenced the foreign firms to make their entry mode choice and operation choice. The mindset of the regulatory institution in the central government is to enforce foreign firms on choosing cooperating strategy while the normative institutions in the society extend lots of norms for firms to avoid the acts with the cultural cognitive institution which is deeply influenced by the Cultural Revolution in 1966.
Subjects
entry mode
China
case study
institutional theory
transaction cost theory
resource based theory
Type
thesis
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