Title: The Imitative Behavior in Taiwanese Subsidiaries' Entry Mode Choice:An Institutional Theory Perspective
Abstract: When the foreign firms choose their entry mode,they consider not only economy goals but also the problem of legitimacy.This study examines Taiwanese subsidiaries' entry-mode choice from an institutional perspective,dividing the institutional environments Taiwanese subsidiaries face into four levels,namely the industry,region,local industry and business group levels.It is found that Taiwanese subsidiaries take a imitating strategy in multi-level institutional environments in order to gain legitimacy.Compared with other levels of institutional environments,the entry mode within the business group is more likely to be imitated by Taiwanese subsidiaries.Compared with the industrial and regional institutions,the entry mode available at the local industry level tends to be a preference.The results show that Taiwanese subsidiaries are more likely to seek legitimacy in a narrowly defined institutional environment despite multi-level institutional environments.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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