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

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  • Chun Ju Lin

    (Department of International Business, National Taipei University of Business, Taipei, Taiwan)

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.

Suggested Citation

  • Chun Ju Lin, 2015. "How Information from Taiwan-based Enterprises in China Influences Investment Decisions of China-based Service Enterprises in Taiwan," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 167-197, June.
    • Handle: RePEc:wsi:jecxxx:v:23:y:2015:i:02:n:s0218495815500065
    DOI: 10.1142/S0218495815500065
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