Abstract

The institutional factors of the home country play an increasingly important role in the process of the rise of MNEs in developing countries. A Through studies in literature, this paper finds that domestic institutional support and institutional restrictions can effect the entry mode of Chinese high-tech enterprises into the target country's market, and the legitimacy of enterprises in the target country plays an intermediary role between the two. The hypothesized effect of variables and entry mode choice of Chinese high-tech MNEs needs to be tested in future research based on survey data drawn from official sources and questionnaires. This study expanded the theoretical tools that determine the decisions of the FDI entry mode.

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