Impact of Dunning’s OLI paradigm on MNEs’ entry mode into Chinese market: Case study of M&S and Tesla

Xiao, Junyi (2017) Impact of Dunning’s OLI paradigm on MNEs’ entry mode into Chinese market: Case study of M&S and Tesla. [Dissertation (University of Nottingham only)]

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This paper endeavors to give an illustration on how OLI paradigm affect entry mode selection when MNEs entering into Chinese market. China, as one of largest emerging market, gained increasing focus for its potential development opportunities and enormous consuming power. Also, its unique advantage of low- cost labor attracted huge number of FDI. It also obtained attention from researchers. Effect from OLI paradigm has been updated and poured into fresh theories all the time, scholars try to break the barriers and periphery of each element of OLI and find potential effect on entry mode selection.

This paper adopts previous reasonable research conclusions, and based on that, come up with new research questions about effect from OLI paradigm when it is regarded as guidance for MNEs entering into Chinese market by employing research method of case study, selects two practical cases of M&S and Tesla, which entering into Chinese market with different denouements, illustrate the influence of OLI both from positive and negative results. M&S and Tesla challenged Chinese market with different entry modes so as to adapt into demand of target consumers, also its ownership advantage affect initiative and motivations in China. Besides, M&S determined WOS and franchise separately in mainland China and Hong Kong, investment environment differentiate location advantages, which plays different level of effect on entry mode selection.

Such detailed analysis and comparison present how “O” and “L” separately affect entry mode selection and find relation between ownership advantage and entry mode selection by analyzing resource commitment and risk level. Even through assessment standard of variable factors, it can be concluded that WOS is comparatively more easily affected by location advantages than franchise and joint venture. Though find basic results regarding on influenced level from O and L, this paper still remains limitations for further researchers to improve.

Item Type: Dissertation (University of Nottingham only)
Depositing User: XIAO, Junyi
Date Deposited: 11 Apr 2018 10:23
Last Modified: 12 Apr 2018 09:48

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