• Empirical Study the Casual Relationships of Entry Mode Selection and the Characteristics, Mental Model, and Risk Perceptions of Taiwan Investors in China

Abstract

The investments of Taiwan firms in China contributed a great deal of Taiwan’s economic growth in recent years. The aim of this research is to study the influence factors of the decision-makers in selecting investment entry modes. We employ Structural Equation Model to analyze the casual relationships among the three independent main factors: top management team’s characteristics, mental model, and risk perceptions, and the dependent factor: entry modes. The empirical study shows the three independent factors significantly affect the dependent factor. We also found that risk perception plays as mediate factor and is affected by top management team’s characteristics and also has effects on entry modes. The paper concludes with a discussion of the theoretical and managerial implications for Taiwan investors.

Keywords: Entry Mode, Top Management Team, Mental Model, Risk Perceptions