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An investigation of the bridging interface strategies used by Chinese MNE when undertaking FDI to Taiwan

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Abstract

Much research looks at the liabilities of foreignness MNEs may experience once they have entered a market, ex-post. Fewer studies, however, look ex-ante at how MNEs deal with market entry approval processes prior to FDI. We explore how Chinese MNEs use service agents when entering the Taiwanese market to create appropriate ‘bridging interface strategies’ that deal with the economic and social fit issues of their FDI projects. Such strategies, if undertaken judiciously, may potentially reduce project approval times for FDI projects. We draw from the theoretical lenses of discriminating alignment and status similarity applied to a unique sample of 415 Chinese MNE FDI project applications. We find that Chinese MNEs are able to strategically build economic and social-fit bridging interfaces to enter Taiwan, a country with a complex geopolitical relationship to China, if they use the correct strategies.

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Data availability

The authors have no authorization to provide the data,deployed for this empirical research, for public use.

Notes

  1. “HK-based consortium rejected for Taipei twin towers project”, Taiwan News, 27 June 2019, accessed 1 May 2022, https://www.taiwannews.com.tw/en/news/3732813.

  2. Accessed from: http://www.taiwanlaw.com/en/about.php

  3. Accessed from: https://www.leetsai.com/aboutus

  4. Accessed from: https://www.tsartsai.com.tw/service@444ffb30-fe70-43db-a64f-f8a2c5015c1a?lang=en

  5. As Brau & Fawcett (2006) reported that using a Big 4 auditor sends a strong positive signal, or “a show of confidence,” in initial public offerings.

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Funding

Funding was provided by National Science and Technology Council (Grant Numbers MOST108-2410-H-031-078, MOST 109-2410-H-011-029).

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Authors and Affiliations

  1. Department of Business Administration, Natinal Central University, No.300 Jung-da Rd., Jung-li City,Taoyuan 320317, Taiwan, ROC

    Yi-Chi Hsiao

  2. Department of International Business, College of Management, National Taiwan University, No. 1, Sec. 4, Roosevelt Rd., Taipei, 10617, Taiwan, ROC

    Hsueh-Liang Wu

  3. Graduate Institute of Technology Management, National Taiwan University of Science and Technology, No. 43, Keelung Rd., Sec. 4, Da’an Dist., Taipei, 10607, Taiwan

    Chun-Ping Yeh

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  1. Yi-Chi Hsiao
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Hsiao, YC., Wu, HL. & Yeh, CP. An investigation of the bridging interface strategies used by Chinese MNE when undertaking FDI to Taiwan. Asian Bus Manage 22, 1485–1512 (2023). https://doi.org/10.1057/s41291-023-00215-8

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