A Study of Foreign Entry Mode Choices of Taiwanese Companies in Europe
Date Issued
2007
Date
2007
Author(s)
Wu, Pei-Tzu
DOI
zh-TW
Abstract
Taiwanese companies highly depend on foreign trade. Compared to other regions around the world there is only a small percentage that Taiwanese companies invested in European market. However, since 2004 more than 10 eastern European countries joined the EU, the European Union became the biggest single market in the world. Therefore, Taiwanese companies should more focus on the investment in European market. The purpose of this study is to figure out the interaction between the factors considered by the Taiwanese companies when they planned to enter European market and their entry mode decisions. Also we discussed about how the entry mode changed and what reasons made Taiwanese companies adjust their entry mode in Europe.
By applying the eclectic theory to be the framework of this research, the choices of entry mode in European market might be affected by ownership-specific advantage, transaction of internal know-how, and environmental variable. Furthermore, we included industrial specific variable and discuss the pattern that how the entry mode changed affected by all the variables in the long-term viewpoint. This study tried to prove the propositions by doing the case studies through collecting the information from the interview with the managers of the selected Taiwanese firms and also the secondary data.
According to the research framework, the propositions are related to entry mode decisions affected by ownership-specific variables, transaction-specific variable, environmental variable, industrial-specific variable, and the adjustment of entry mode. The results of the case studies cohere with most of the propositions. The further research could use questionnaires and statistic methods to prove the propositions, focus on the choice between Greenfield and acquisition when firms decide to enter a market by setting up a wholly own company, or compare the entry mode decisions between different industries.
Subjects
海外市場進入模式
折衷理論
歐洲市場
Entry Mode
Eclectic Theory
European Market
Type
thesis
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