As the globalisation tendency is going more and more popular throughout the universe, more and more companies are traveling international and looking for chances to spread out their market in other different states. This survey provides us a valuable cognition about the impacts of factors that could impact the endurance of a company when it intends to do a farther concern in other states, peculiarly in Vietnam.

Understanding the of import function of an entry manner pick and ownership construction in a corporation, Eric Stang has used the determination from Pan ‘s survey which is about the influences on foreign equity degree in joint venture in China to execute research in instance of Vietnam. The research non merely aims to supply a general image about the factors exist in the Vietnam ‘s economic system but besides shows the schemes that foreign corporations has applied in other to accommodate to those factors. Furthermore, the research besides aims to place how far the consequence from Pan ‘s survey can be generalized to other states, peculiarly Vietnam.

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The research emphasizes that the ownership construction and entry manner pick are considered as really of import initial schemes of a company when it wants to execute operation on foreign states. These two schemes are believed to be based on similar considerations and likely to be affected by common set of factors. Therefore these two watercourses of research about entry manner pick and ownership degree should be conducted at the same time, but in old surveies, these two watercourses of research have been conducted individually. Thus this survey contributes us a farther cognition by look intoing these issues at the same time. On the other manus, the research besides aims to execute integrative analysis, which helps us to obtain the better understanding the determiners of ownership degree versus entry manner.


The research is evidently divided into two parts. The first portion is a reproduction of Pan ‘s survey about the foreign equity ownership degree while the 2nd portion is an probe on entry manner pick. These two issues are so investigated at the same time in the context of Vietnam.

As classified clearly in the research, the pick of foreign market entry manner includes equity joint venture ( EJV ) , entirely owned subordinate ( WOS ) , concern cooperation contracts ( BCCs ) aˆ¦ ” When MNCs invest in a foreign state, they foremost need to make up one’s mind on an entry manner. If an EJV is chosen as an entry manner, another of import strategic determination concerns the degree of equity ownership, which is straight related to the extent of control. ” ( page 442 )

On the other manus, Pan has besides clearly defined the significance and the importance of equity joint venture ( EJV ) ownership degree, “ EJV ownership degree is the result of dialogue procedure between the venture spouse, reflecting what the transnational corporations ( MNCs ) want and what it can or can non acquire from the local side. ” The EJV ownership degree non merely affects the endurance of the MNCs but besides affects the benefit the local invested states and house. Therefore, all parties should take into consideration in the ownership degree determination in an EJV.

The survey is based on the hypothesis that “ the trouble of doing such an internalisation determination with regard to FDI reflects the huge differences in locational and advantage across states and the changing grades of internalisation advantages that can be gained in different states. ” ( p. 444 ) Eric has related to Pan ‘s survey to pull out eight among 10 factors that Pan believes to be the most of import determiners of foreign equity ownership degree in EJV. These eight determiners have been clearly classified into three groups: country- , industry- , and venture-specific factors. The other two hypotheses, which are about the foreign capital input and local spouse province have been excluded from this research because they can non be found on the Vietnamese database.

In other to accomplish the aims of this survey, Eric has non merely given clear definitions of the eight hypotheses above but besides cited evidently the consequence extracted from Pan ‘s survey. Afterwards, doing a combination with some other statement from other surveies such as Kim & A ; Hwang ‘s survey, Erramilli & A ; Rao ‘s survey, etc, Eric has successfully provided a model of hypotheses that is so used to use to the instance of Vietnam to do a comparing.

In other to take the reader to a better understanding about the research, Eric has clearly classified the variable into two groups which are independent and dependent variables. The dependent variable are about the chance of taking one degree of foreign equity ownership in the EJV versus another degree, include three comparings which are 50 % vs. minority, bulk vs. minority and bulk vs. 50 % . The independent variables are eight hypotheses that have been extracted from Pan ‘s survey which are state hazard, cultural distance, publicizing strength, competitory strength, investing sum, continuance, figure of local and foreign spouses, and location.

Discoursing the restriction of the research, Eric has suggested, a farther survey should be carried out in order to obtain a comprehensive apprehension about the ownership schemes of MNCs. Caution should be taken, as suggested in the survey, specific consideration should be concerned for each particular concern determination.

Performing Analysis

Project principle

Eric Stang was motivated by the globalisation tendency throughout the universe economic. Understanding the first large inquiry of every MNCs when they intend to put in foreign states, that is how to take the most suited entry manner and degree of ownership that could maximise the benefit of them. By explicating the of import significance of taking a suited entry manner and degree of ownership, together with giving obvious definition of determiners, Eric has successfully led the reader to the research with a clear cognition non merely about the aims of the research but besides a perfect apprehension about the hypotheses that the research has been based on.

As pointed in the first portion of the research, there were a batch of surveies conducted about the entry manner pick and degree of ownership in EJV but there was non any survey conducted these two dimensions at the same time. Acknowledging this deficiency of information from old surveies, Eric has conducted this research with the aim of executing analysis these two dimensions at the same time. Based on the findings from old surveies, Eric has provided a valuable part which has shown the linkage between entry manner pick and ownership construction.

Extracting the dependable hypotheses from Pan ‘s survey, so executing research in the context of Vietnam, Eric was successful in doing a comparing between the findings from China and from Vietnam. This was helpful to place how far Pan ‘s survey about China can be generalized to Vietnam. To back up for this aim, in the research, Eric has besides evidently shown out which factors can be supportive and which factors can non be supportive in instance of Vietnam.

By reenforcing and synthesising bing theories, thoughts, etc, particularly from Pan ‘s determination, Eric has successfully preformed analysis the database in context of Vietnam. The research has added to the watercourse of cognition of directors of MNCs in term of their international concern schemes. Eric has provided such a cardinal model for every MNCs involved in FDI in Vietnam in order to assist them do the most suited scheme.

Literature reappraisal

By carry oning extended reappraisal of relevant literatures, Eric has identified the spread from old surveies, that is the deficiency of cognition about the linkage between entry manner pick and degree of ownership which has been mentioned above. Eric has performed this research in order to carry through this spread of cognition, particularly in the instance of Vietnam. From this point, the research of Eric has built an analytical model for the assessment these two dimensions in a same survey.

Eric has conducted extended reappraisal of relevant literatures on the constructs of determiners extracted from Pan ‘s survey. The research has non merely given a clear definition of these determiners but besides provided the determination of Pan in term of influences on foreign ownership degree and entry manner pick in China. By reenforcing the consequences found from China, the research has provided a model for consideration the instance of Vietnam. A comparing between the determination of Pan about China and the findings about Vietnam was helpful to place which factors extracted from Pan ‘s survey can and can non be supportive to other states, peculiarly in Vietnam.

Not merely utilizing the determination from Pan ‘s survey, Eric has besides performed relevant literature reappraisal from other research in order to place and stress which determiners could be supportive and which determiners need to be used carefully. From this point, it helps to clear up the issue when carry oning analysis in context of Vietnam.

However, the issue here, this research was performed largely based on Pan ‘s survey and other surveies, which is may be out-dated. The timing difference between the old survey and the day of the month of Vietnam ‘s database may bring forth some obstruction in the research. Acknowledging the nature of the economic system, that is keep changing and changing, the research has faced the spread of clocking difference which may impact the consequence ‘s determination.

Paradigm & A ; Design

Taking the positivism paradigm which is based on the deductive theory, Eric has used the determination from Pan ‘s survey to make a model in order to execute analysis the database from Vietnam. In footings of epistemology, the research has discussed the impacts of determiners on three dimensions: degree of foreign equity ownership in the EJV versus another degree which included three comparing 50 % vs. minority, bulk vs. minority, bulk vs. 50 % ; market entry mode versus another manner which besides included three comparing WOS vs. EJV, WOS vs. BCC, EJV vs. BCC ; and the last dimension is the integrative analysis on the per centum of foreign equity. The research besides lightened the consequence from Pan ‘s survey to prove the generalisation and dependability of it and to turn out how far it can be generalized to other states.


Using the secondary informations, the research has been implemented with secondary analysis. The method used in this research was a combination between grounded theory and analysis of bing informations. Based on the model from old surveies, particularly Pan ‘s survey, Eric has performed analysis bing informations about Vietnam.

With the secondary informations beginning, Eric has taken all the advantage of cost and clip salvaging. By this advantage, Eric has gained more clip to set more focal point on the information analysis. Furthermore, Eric has besides covered the disadvantage of this method which relate to the quality of the informations by utilizing the informations published from Ministry of Planning and Investment of Vietnam, which helps to guarantee the dependability and cogency of the informations and besides helps to increase the dependability of the research.

However, with the deficiency of information from the Ministry of Planning and Investment of Vietnam, the research has been conducted analysis based on merely eight hypotheses alternatively of 10s from Pan ‘s because the database used does non supply adequate information about the two staying factors which are about foreign capital input and local spouse province.

Results & A ; Presentation

Harmonizing to Richard F. Taflinger, “ the intent of taking a research is to larn something or to garner grounds ” . This research has achieved its aims of reexamining the assorted factors that could impact the entry manner pick and ownership construction of MNCs ‘ international concern scheme, particularly in the context of Vietnam. The research has demonstrated the importance of these factors assessment in the MNCs ‘ program for the international concern enlargement.

Presented with a clear construction together with valuable information, the research has led the reader to the measure by measure apprehension, from the definition to the hypotheses, and so the analysis and comparing. The conceptual portion has successfully provided the reader a model of cognition which is non merely about the definition but besides about the impact of the determiners in term of FDI concern. By doing the information analysis and so compare with the hypotheses from old surveies, the consequence has clearly pointed out which findings from Pan ‘s can and can non be applicable to Vietnam.

In the research, Eric has non merely identified the difference found between this survey and Pan ‘s survey but besides indicate out some suited grounds which has led to these difference, such as the difference from database, the difference from timing, the difference from the experience of MNCs ‘ leader, etc.

By utilizing the database extracted from Ministry of Planning and Investment of Vietnam, the information and Numberss used in this research are dependable, that helps the research to accomplish its dependability. Except the fact that, the database used in this research was taken from the period of 1988 to mid 2000, which may be non up-to day of the month. Vietnam ‘s economic system is remaining in the fast growing measure, therefore the construction of economic system may alter and be different. Furthermore, the cognition and experience of MNCs about Vietnam ‘s economic system are besides increasing twenty-four hours by twenty-four hours. Understanding this spread, as the research suggested, farther probe should be carried out to obtain a deep and specific apprehension for peculiar determination.