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Equity-based entry modes of the Greater Chinese Economic Area's foreign direct investments in Vietnam

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  • Shieh, Bih-Lian
  • Wu, Tzong-Chen

Abstract

In January 2007, Vietnam became the 150th member of the World Trade Organization (WTO). Vietnam is located in the heart of Asia and has a resource-rich economy, which offers it a significant advantage in attracting foreign direct investments (FDIs). The research focuses on equity-based entry mode choices adopted by multinational corporations (MNCs) in the Greater Chinese Economic Area (GCEA) for entering Vietnam. The statistical results indicate that equity-based entry modes are significant when FDI firms entering Vietnam originate from the GCEA, which includes Mainland China, Hong Kong, Taiwan, and Singapore. However, the interaction results show that industry does not have a moderating effect on the relationship between location and entry mode, whereas it is not found that industrial cluster is specific to any one location. The generalized model has implications for the theoretical and managerial perspectives of both the host and the home countries.

Suggested Citation

  • Shieh, Bih-Lian & Wu, Tzong-Chen, 2012. "Equity-based entry modes of the Greater Chinese Economic Area's foreign direct investments in Vietnam," International Business Review, Elsevier, vol. 21(3), pages 508-517.
    • Handle: RePEc:eee:iburev:v:21:y:2012:i:3:p:508-517
    DOI: 10.1016/j.ibusrev.2011.06.001
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    Cited by:

    1. Nguyen Minh Ha & Quan Minh Quoc Binh & Pham Phi Dang, 2020. "Cultural Distance and Entry Modes in Emerging Markets: Empirical Evidence in Vietnam," JRFM, MDPI, vol. 13(1), pages 1-11, January.
    2. Jamshid Alinasab & Seid Mohammad Reza Mirahmadi & Hassan Ghorbani & Francesco Caputo, 2022. "Discovering Knowledge and Cognitive Based Drivers for SMEs Internationalization," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2490-2518, September.
    3. Chenxi Wan & Carlos M. P. Sousa & Jorge Lengler & Qun Tan, 2023. "Entry Mode Choice: A Meta-Analysis of Antecedents and Outcomes," Management International Review, Springer, vol. 63(2), pages 193-246, April.
    4. Zhi Shen & Francisco Puig & Justin Paul, 2017. "Foreign Market Entry Mode Research: A Review and Research Agenda," The International Trade Journal, Taylor & Francis Journals, vol. 31(5), pages 429-456, October.

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    Keywords

    Entry mode; FDI; GCEA; MNC; Vietnam;
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