{"title":"Imbalanced trade dependence and Chinese firms’ entry mode choices: the moderating effects of state ownership and marketization","authors":"Qunyong Xie","doi":"10.1108/nbri-03-2022-0022","DOIUrl":null,"url":null,"abstract":"\nPurpose\nApplying resource dependence theory (RDT), this research paper aims to examine the effect of imbalanced trade dependence (ITD) on entry mode choices and how state ownership and marketization each can moderate this effect.\n\n\nDesign/methodology/approach\nUsing data on 1,404 foreign projects made by 493 Chinese listed firms during the 2009–2015 period of time, this study applies logit regression to do the statistical analysis.\n\n\nFindings\nIt finds that ITD positively affects the choice of wholly-owned subsidiaries. State ownership and marketization each can moderate this influence.\n\n\nOriginality/value\nIt develops the concept of ITD, applies it to examine entry mode choices and lets us better understand the substitutive or complementary relationship between governments and foreign firms as two sources of resources. It helps us better understand some competitive advantages of emerging market firms (EMFs) and the impacts of the state on EMFs’ outward FDI. It contributes to entry mode research by applying RDT to explain how ITD influences entry mode choices and how state ownership and marketization each can moderate this relationship.\n","PeriodicalId":44958,"journal":{"name":"Nankai Business Review International","volume":null,"pages":null},"PeriodicalIF":1.8000,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Nankai Business Review International","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/nbri-03-2022-0022","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 2
Abstract
Purpose
Applying resource dependence theory (RDT), this research paper aims to examine the effect of imbalanced trade dependence (ITD) on entry mode choices and how state ownership and marketization each can moderate this effect.
Design/methodology/approach
Using data on 1,404 foreign projects made by 493 Chinese listed firms during the 2009–2015 period of time, this study applies logit regression to do the statistical analysis.
Findings
It finds that ITD positively affects the choice of wholly-owned subsidiaries. State ownership and marketization each can moderate this influence.
Originality/value
It develops the concept of ITD, applies it to examine entry mode choices and lets us better understand the substitutive or complementary relationship between governments and foreign firms as two sources of resources. It helps us better understand some competitive advantages of emerging market firms (EMFs) and the impacts of the state on EMFs’ outward FDI. It contributes to entry mode research by applying RDT to explain how ITD influences entry mode choices and how state ownership and marketization each can moderate this relationship.
期刊介绍:
Nankai Business Review International (NBRI) provides insights in to the adaptation of American and European management theory in China, the differences and exchanges between Chinese and western management styles, the relationship between Chinese enterprises’ management practice and social evolution and showcases the development and evolution of management theories based on Chinese cultural characteristics. The journal provides research of interest to managers and entrepreneurs worldwide with an interest in China as well as research associations and scholars focusing on Chinese problems in business and management.