Based On The Global Value Chain Of International Market Entry Mode Choice

International market entry mode choice is not only one key part of enterprise's internationalization strategy, but also one important research field of international business. Since the 1960s, various theories have emerged in this field abroad such as monopoly advantage theory, PLC theory, internalization theory, transaction cost theory, eclectic theory, internationalization process theory and resource/capability-based theory, while the field in China is dominated by eclectic theory and internationalization process theory. The theoretical development reflects that entry mode choice needs to focus at both exploitation of existing advantage and exploration of new advantage.The evolution of the global value chain of home appliance industry has showed two trends as location variation and link variation. The internationalization of Chinese home appliance enterprises is the process of integration into as well as re-position in the global value chain. The practical background requires a global-value-chain perspective to analyze the global competitive structure and the construction of competitive advantage in it.Through the analysis towards the characteristic of the global value chain of home appliance industry, and the comparison between the explanation on international competitive advantage of both international business research and strategic management research, this paper utilizes the global value chain as framework, integrates both position perspective and the resource/capability-based perspective, and puts forward an construction process of competitive advantage based on the global value chain. In this process, enterprises firstly exploit and/or explore resources in different parts of the global value chain and integrate them, then based on these resources create value to serve the global market, and finally acquire persistent international competitive advantage.After that, this paper goes on to provide an entry mode choice model based on the global value chain. In this model, the strategic objective, enterprise's resource and capability, and the global value chain structure play as three main decisive factors influencing the entry mode choice. The choice is then reflected by four dimensions such as ownership choice, ownership obtainment choice, location choice and value chain part choice. From the combination of these four dimensions, this paper concludes an overall group including 46 specific entry modes respectively belonging to seven main categories, which makes a meaningful exploration in comprehensively describing all entry modes in a single framework.Finally, this paper makes a descriptive statistical analysis on all entry activities of 17 Chinese home appliance enterprises. This paper also makes an empirical test towards the influence of strategic objectives on the ownership choice and the ownership obtainment choice, in which the results shows that the strategic objectives do have different influences to some extent. The last three cases of Chinese home appliance enterprises also reflect the influence of three kinds of decisive factors on entry mode choice with regard to four choice dimensions.