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Abstract

This study seeks to contribute to entry mode literature by introducing the concept of “corporate culture diversity”. Compared to multinational enterprises (MNEs) from developed countries, Taiwan’s MNEs have shorter history of internationalization. Therefore, international learning is critical to their entry modes. We examined an original determinant of entry mode choice, proposed and tested the operationalization for a new theoretical construct, namely “corporate culture diversity”. Hypotheses were developed on the entry modes in relation to cultural diversity of a firm’s international experience, a step beyond the conventional theory of how national cultural differences influence the international expansion strategy. The hypotheses were tested within the framework of organizational learning, using data on over 313 entries that 58 Taiwanese MNEs in semiconductor industry carried out in 25 countries and territories during 1986-2006.

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