A Theoretical Study about Entry Modes Choice of Multinational Corporate Based on Knowledge Transfer

It is an important reason of international expansion of multinational corporation to hold distinctive knowledge. Based on knowledge transfer theory, the text uses means of comparing cost and comparing net benefit to analyze overseas entry modes of multinationals. First, the text discusses how knowledge tacitness affects four entry modes (licensing, joint venture, wholly owned entry, export) of multinational corporations; and then the text discusses how knowledge transmission capacity of source corporation moderate the relationship between knowledge tacitness and the choice of entry strategies; finally, the text analyzes how knowledge absorptive capacity of objective corporation moderate the relationship between knowledge tacitness and the choice of entry strategies. The text confirms optimum entry modes under impact of several factors of knowledge transfer. The study enriches theoretical perspectives on entry strategy of multinational in some ways.