Cultural Fit and the Choice of International Market Entry Scale of Chinese Firms.
- Resource Type
- Article
- Authors
- Qiu, Tianjiao; Homer, Pamela Miles
- Source
- Journal of Global Marketing. Nov/Dec2018, Vol. 31 Issue 5, p308-323. 16p. 1 Diagram, 3 Charts.
- Subject
- *INTERNATIONAL business enterprises
*MARKET entry
*EMERGING markets
*FOREIGN investments
*CAPITAL movements
*ENTRY mode strategies (Foreign markets)
- Language
- ISSN
- 0891-1762
Previous research on how cultural distance impacts the choice of entry mode shows contradictory findings. This study uses a strategic fit perspective to examine the impact of distinct cultural factors as predictors of equity entry scale of Chinese firms. Findings from a sample of 667 Chinese firms demonstrate that the effects of cultural fit on equity entry scale vary across cultural dimensions. Whereas a collectivism cultural fit motivates Chinese investors to secure a high-equity entry scale in foreign firms, a lower power distance cultural fit (“misfit”) leads to higher entry involvement. [ABSTRACT FROM AUTHOR]