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Exploratory research about entry mode affecting factors for Dutch companies entering China

Van der Lippe, Maarten (2014) Exploratory research about entry mode affecting factors for Dutch companies entering China.

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Abstract:In this research a practical oversight of all the influencing factors that Dutch companies need to cope with when entering China is given. First of all, the entry modes have their own advantages and disadvantages, like the degree of ownership, control, access to the market and initial investment needed. Based on these criteria some of the entry modes were not taken into consideration and the other entry modes (JV, M&A, Greenfield and exporting) were compared with each other. Also the Chinese context was taken into consideration. This was done based on specific theory on China, informal conversations, a questionnaire and expert interviews. Based on these data it was found out that the Chinese government and the social-cultural differences are the main influencing factors for Dutch companies entering China. The influence of the government and social-cultural differences have different implications and had an influence on different factors. All together this led to 15 different factors that had an influence on Dutch companies that entered the Chinese market: initial investment, degree of access, long-term profit, control over operations, government and operational barriers, market knowledge, start-up time, strategic reasons for China, cultural distance and defending intellectual property. These 15 factors were ranked from – (weak) to ++ (good) on all the four different entry modes and put in a framework. Companies can adjust the framework to their situation by adding more weight to important factors and less weight to unimportant factors. The entry mode that ends up with the highest amount of +’s after that is the most favorable entry mode for that company.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/65098
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