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The Timing of Entry into a New Market: An Empirical Study of Taiwanese Firms in China

Published online by Cambridge University Press:  02 February 2015

Danchi Tan ,
Shih-Chang Hung  and
Nienchi Liu
Danchi Tan
Affiliation:
National Chenchi University, Taiwan
Shih-Chang Hung
Affiliation:
National Tsing Hua University, Taiwan
Nienchi Liu
Affiliation:
National Central University, Taiwan
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Abstract

This study examines the determinants of the timing of Taiwanese firms' entry into China. Our empirical findings suggest that this strategic decision is influenced by both economic and institutional concerns. In particular, we found that Taiwanese firms that expected greater benefits from early entry tended to be early entrants in China, while those that were more sensitive to uncertainty chose to defer their entry. We also found a curvilinear relationship between firm size and timing of entry into China. Our findings further indicate that the negative relationship between investment irreversibility and early entry is weaker in the presence of substantial perceived first mover advantages.

Keywords

entry timinginstitutional forcesinternational market entryproportional hazards model进入时机国际市场进入制度因素比例机率模型
Type
Articles
Information
Management and Organization Review , Volume 3 , Issue 2 , July 2007 , pp. 227 - 254
Copyright
Copyright © International Association for Chinese Management Research 2007

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