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JOURNAL OF APPLIED BUSINESS AND ECONOMICS
The Influence of Legitimacy and Multi-level Environments: A Case Study of Taiwanese
Subsidiary’s Entry Mode Choice in Mainland China
Author(s): Shaodong Hu, Hongxin Yao, Zongling Xu
Citation: Shaodong Hu, Hongxin Yao, Zongling Xu, (2012) "The Influence of Legitimacy and Multi-level Environments: A Case Study of Taiwanese
Subsidiary’s Entry Mode Choice in Mainland China," Vol. 13, Iss. 3, pp. 91 - 106
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This research studies Taiwanese subsidiaries’ entry-mode choice from the angle of institutional theory.
The findings show that Taiwanese subsidiaries in Mainland China imitate each other to gain legitimacy
when choosing an entry mode at different levels of institutional environments. Taiwanese subsidiaries
prefer to imitate the entry mode of their own group, rather than institutional environments at other levels,
and prefer to imitate the entry mode of local industry institutional environment, rather than national
industry institutional environment and region institutional environment, which indicates that Taiwanese
subsidiaries tend to seek legitimacy in a narrow institutional environment among a multi-level
institutional environments in Mainland China.
