How Information from Taiwan-based Enterprises in China Influences Investment Decisions of China-based Service Enterprises in Taiwan

Chun Ju Lin ()
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Chun Ju Lin: Department of International Business, National Taipei University of Business, Taipei, Taiwan

Journal of Enterprising Culture (JEC), 2015, vol. 23, issue 02, 167-197

Abstract: This study yielded insights based on eight China-based service enterprises that entered the overseas Chinese market through greenfield investment. We found that some of the China-based service enterprises explore the internationalization information from Taiwan-based enterprises in China, which operated through trade, outsourcing and joint ventures. Most cases of SOEs, including airlines, wholesale & retail, restaurant and banking, the investment decision was made in full awareness of the institutional driving factor of ECFA. China-based service enterprises owned by local government and venturing in Taiwan are more likely to depend on personal or partner networks of Taiwan-based enterprises in China, than on due diligence process. They intend to venture into the overseas Chinese market for their outward FDI. Our findings and propositions are important for China-based service enterprises’ outward FDI. Asian host countries can improve their understanding of how to influence the FDI of China-based service enterprises through their home-country-based enterprises in China, helping to mitigate their liability of foreignness by means of personal or partner networks.

Keywords: Chinese service enterprises; internationalization; greenfield investment (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1142/S0218495815500065

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