The Impact of Fit between Anticipated and Actual Entry Mode Selection on Firm Performance : Evidence from China

International business researchers have extensively studied entry mode choice, but only a very few studies have examined whether anticipated entry modes by determinants would lead to higher firm performance. By analyzing approximately 17,000 foreign entries in seven industries into China from 1979 to 2004 we test the impact of determinants, such as host countries' experience, cultural distance, industry asset intensity, resource commitment and location on entry modes choices into China. Furthermore, we examine how the fit between anticipated and actual entry modes selection affects firm performance. Findings indicate that firms who choose entry modes based on cultural distance and location advantages theories outperform other firms