Entry mode and performance of foreign direct investment : the role of strategic orientation

Research output: Working paperWorking paper series

Abstract

Multinationals have distinctive strategic orientations toward the host country when investing overseas: to explore the local market or to establish efficient manufacturing for export. Analyses of FDI operations in China suggest that local market oriented firms tend to rely on the joint venture mode while export oriented investors mostly choose to be wholly owned operations. Moreover, there are significant differences between local market oriented and export oriented firms across four different performance measures. Results of the study suggest that researchers should consider the difference in FDI's strategic orientation when attempting to identify success factors and recommending performance-enhancing strategies.

Original languageEnglish
Place of PublicationHong Kong
PublisherHong Kong Institute of Business Studies
Number of pages29
Publication statusPublished - Jun 2002

Publication series

NameHong Kong Institute of Business Studies Working Paper Series
PublisherLingnan University
No.052–012

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Keywords

  • Strategic orientation
  • Foreign investment
  • Entry mode
  • Performance

Cite this

CUI, G., & LUI, H. (2002). Entry mode and performance of foreign direct investment : the role of strategic orientation. (Hong Kong Institute of Business Studies Working Paper Series; No. 052–012). Hong Kong Institute of Business Studies. https://commons.ln.edu.hk/cgi/viewcontent.cgi?article=1037&context=hkibswp