International Business Management 09/10
Assignment 2 – Session 3
-
“Emergent Markets – FDI by Taiwanese”

MSc International Business Management
(SEIB)

Dr Sougand Golesorkhi

Table of Contents
1. Executive Summary 1
2. Introduction 1
3. Theories 2
3.1 Concept of internationalisation 2
3.2 Internationalisation process 2
3.3 Dunning Theory 2
4. Networks 2
5. Ownership structure 3
6. Commitment 4
7. Case studies 4
7.1 Case study 1 4
7.2 . Case study 2 5
7.3 Case study 3 4
8. Conclusion 4
9. Bibliography

1. Executive summary The internationalisation process theory alongside the theory of Dunning shows us possible entry modes available to companies bent on investing oversees and the criteria the companies must meet.

The networks tell us the advantages a company in Asia have when investing in another Asian country compared to a company in Europe has. In this network, it tell us the cultural linkages between Taiwan and China e.g. their heritage. The network also tell us that even though Asian companies are regarded as weak they have strong network ties which significantly makes up for this perceived disadvantage.

The company ownership structure in Asia is generally consisted of family owned companies and might therefore have strong incentives to invest in order to protect or safeguard future generations.

The case studies are all concentrated about companies located in Taiwan and making investments into China and are all family owned. The case studies also shows that companies in Taiwan are willing to commit themselves heavily in China and make the use of the highest level of entry mode in the internationalisation process mode. This high level of entry mode is driven by Taiwanese network ties with China.

2. Introduction The aim of this report is to give insight into the