An investigation of the bridging interface strategies used by Chinese MNE when undertaking FDI to Taiwan

Yi-Chi Hsiao (), Hsueh-Liang Wu () and Chun-Ping Yeh ()
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Yi-Chi Hsiao: Natinal Central University
Hsueh-Liang Wu: National Taiwan University
Chun-Ping Yeh: National Taiwan University of Science and Technology

Asian Business & Management, 2023, vol. 22, issue 4, No 10, 1485-1512

Abstract: Abstract Much research looks at the liabilities of foreignness MNEs may experience once they have entered a market, ex-post. Fewer studies, however, look ex-ante at how MNEs deal with market entry approval processes prior to FDI. We explore how Chinese MNEs use service agents when entering the Taiwanese market to create appropriate ‘bridging interface strategies’ that deal with the economic and social fit issues of their FDI projects. Such strategies, if undertaken judiciously, may potentially reduce project approval times for FDI projects. We draw from the theoretical lenses of discriminating alignment and status similarity applied to a unique sample of 415 Chinese MNE FDI project applications. We find that Chinese MNEs are able to strategically build economic and social-fit bridging interfaces to enter Taiwan, a country with a complex geopolitical relationship to China, if they use the correct strategies.

Keywords: CMNEs; FDI screening; Bridging interface; Discriminating alignment; Status similarity (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1057/s41291-023-00215-8

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