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 likeli- hood 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. Published online in Wiley Online Library (wileyonlinelibrary.com) © 2011 Wiley Periodicals, Inc. • DOI: 10.1002/tie.20425 FEATURE ARTICLE By Lin Cui Fuming Jiang Bruce Stening 483 The Entry-Mode Decision of Chinese Outward FDI: Firm Resources, Industry Conditions, and Institutional Forces Correspondence to: Lin Cui, School of Management, Marketing, and International Business, ANU College of Business and Economics, The Australian National University, Canberra 0200 ACT, Australia, +61 2 6125 6190 (phone), + 61 2 6125 8796 (fax), lin.cui@anu.edu.au.