earticle

영어

This paper examines the determinants of foreign entry mode choice in China’s banking sector with a focus on strategic investment and wholly-owned subsidiaries. A conceptual framework that integrates the institution-based view and resource-based view is developed to analyze what determines foreign entry mode choice in China’s banking sector. On the institution side, this paper finds that regulation/deregulation of host country on foreign financial institutions, especially the regulation on business scope and entry requirements, affect foreign entry mode choice. On the resource side, strategic investment provides foreign financial institutions access to location-specific resources, especially customer information, and then the wholly-owned subsidiaries of financial institutions would like to utilize the location-specific resources to do their own business.