The role of asset specificity in international entry mode choice of chinese firms

Based on a sample of 282 Chinese enterprises with international operations, this study examines the impact of asset specificity on their choice of foreign entry modes. Multivariate logistic regression models are employed to test the hypothesized effect. The results reveal that asset specificity has more influence on entry mode choice of service firms than that of manufacturing firms. A high level of asset specificity tends to induce both types of the firms to use high control entry modes.