When does managers' global mindset affect the choice of FDI entry modes?: The case of Chinese outward investing firms
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We examined how senior managers’ cognitive decision making styles and their managerial experience interact with their global mindset affecting their decisions on the choice between high and low ownership entry modes for their foreign operations. The empirical counterpart studies 237 Chinese MNEs. We find that the impact of global mindset on entry mode decision is contingent on the decision making styles and managerial experience of the decision makers. While managers who demonstrate ‘feeling’ decision making style tend to choice higher ownership than the managers with ‘thinking’ decision making style. The strength of global mindset for ‘feeling’ managers does not lead to much variation in choosing ownership, whereas strongly global minded ‘thinking’ managers tend to choose lower ownership for their subsidiaries in foreign country locations. Strongly global minded managers with more experience in their position will choose higher ownership. Conversely, less experienced managers with strong global mindset will choose lower ownership.
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