A Resource-Based perspective of entry mode choices of Electronic Components industry into China

The aim of this study is to empirically investigate the effectiveness of the Resource-Based Theory in explaining the entry mode choices of Taiwanese Electronic Components firms in China markets during the time period from 2003 to 2005. The annual data includes as many as 267, 324, and 283 firms respectively. This study explores how the firms' resources (defined as firms' assets and capabilities) influence the entry mode choices between wholly-owned subsidiaries (WOS) and joint ventures (JV) of Taiwanese Electronic Components firms. It also identifies those factors that have an important impact on the choices of entry mode and provides meaningful suggestions for the new firms that wish to invest in the China market.