Using a sample of 408 Chinese enterprises with international operations, this paper investigates the impact of product innovation, R&D intensity, marketing innovation and R&D manpower on entry mode selection and performance of Chinese firms. Although there is no sufficient evidence to verify the relationship between R&D manpower and entry mode choice, our empirical results show that the enterprises with more product innovations, higher R&D intensity or marketing capability tend to choose an international entry mode with a high degree of control. These will correspondingly result in better financial performance. However, the entry mode choice does not produce statistically significant effect on the firms' sales growth