Customer Bargaining Power, Strategic Fit, and Supplier Performance

2021 ◽  
Author(s):  
Hsihui Chang ◽  
Sheng Liu ◽  
Raj Mashruwala
Keyword(s):  
Bargaining Power ◽  
Strategic Fit ◽  
Supplier Performance

Revisit the CD Paradox in Entry Model Choice: Toward the Perspective of Strategic Fit

2018 ◽  
Vol 18 (3) ◽  
pp. 86-103
Keyword(s):  
Joint Venture ◽  
Cultural Distance ◽  
Model Choice ◽  
Outward Fdi ◽  
Strategic Fit ◽  
Market Expansion ◽  
Technological Competence ◽  
Entry Model ◽  
Wholly Owned Subsidiary ◽  
Strategic Motives

The effect of cultural distance (CD) on the entry mode choice (EMC) has been intensively studied but the empirical results are mixed. This study adopts the strategic fit perspective to examine how firms’ strategic motives and technological ownerships may influence the EMC in face of different cultural distances. Analyzing Taiwanese outward FDI cases from 2004 to 2007, this study found that firms entering the culture-distant countries would choose the wholly-owned subsidiary (WOS) mode when emphasizing more about the protection of technological competence than market expansion, or else would choose the joint-venture (JV) mode when the market expansion is prioritized.

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