Notice of Retraction International entry mode choice of Chinese firms: Impact of ownership, location and internalization factors

Abstract

Drawing on the perspectives of Dunning's eclectic paradigm, this paper examines the impact of ownership, internalization and location factors on foreign entry mode choice of Chinese firms. Based on a sample of 413 China's listed companies with overseas operations, we find the evidence that the enterprises prefer a high entry mode when they possess more international experience or higher innovative ability. Furthermore, our results also indicate that tacit knowledge encourages the firms to select wholly-owned subsidiary as an entry mode, but it does not induce them to favor joint venture over export. A low entry mode is more likely to be chosen in the presence of a higher country risk. High-tech firms tend to select a high entry mode.