An empirical analysis of Sino-foreign joint ventures : differences between Overseas Chinese and non-Chinese foreign investments

It is widely acknowledged that China is one of the most popular host nations for FDI among the less developed countries. A large number of foreign firms had invested or are planning to invest in China - a country with extremely large domestic market, cheap labour and abundant resources. Entry mode decisions are traditionally influenced by firm-specific advantages such as technology expertise, management or marketing experience. However, it is believed that guarai and other cultural factors are essential in doing business in China and the overseas Chinese are more well-connected in China. The question is, which set of advantages are more influential in entry mode decision for foreign direct investment in China