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This article addresses some fundamental methodological issues confronting management researchers undertaking research in China. Among other things, it considers the following: cultural factors that might impact on what is a researchable question; sampling issues; difficulties in developing valid research instruments; problems pertaining to data collection; and the challenges of data interpretation. While the issues are by no means unique to China, there are a number of matters that require special attention in the Chinese context. Failure to consider such methodological problems might potentially call into question the findings of otherwise important management studies. Specific recommendations are provided as to how these challenges can be successfully dealt with.

How do Chinese firms make their entry‐mode decision for their outward investments? Based on the three theoretical perspectives that balance the “strategy tripod,” our study conducted empirical tests using survey data collected from outward‐investing Chinese firms. We found that the cost advantage of the investing firm and learning opportunities in the host industry have positive effects on the likelihood of a Chinese firm opting for wholly owned subsidiary against joint‐venture entry mode, while the market attractiveness of the host industry, host‐country restrictions, cultural barriers, and cognitive pressures have negative effects. © 2011 Wiley Periodicals, Inc.

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