Location choice and entry mode of emerging market multinationals : a study of Chinese firms

This study explores the location choice and entry mode strategies of emerging market multinationals. Based on the data from of 301 manufacturing firms from China, the results suggest that their location choice and entry mode strategies vary significantly across foreign markets and the type of foreign direct investment (FDI) operations. While Chinese firms pursue export opportunities in both developed and developing economies, they are more likely to engage in FDI operations in developed economies, including marketing, production, and research and development (RandD). Moreover, firm background variables and the host and home country institutional factors also affect their entry mode decisions. The findings have meaningful implications for understanding the internationalization of emerging market multinationals.