Research On Influence Of Institutional Distance On Chinese Enterprises ODI: Location、Strategy And Performance

This paper focuses on the theme of "China enterprise transnational investment" is a real economic problem. Although China after more than 30 years of reform and opening up, foreign direct investment made impressive achievements, but it still faces many difficulties and problems, which belongs to the "immature foreign investment phase". The traditional international investment theory is mostly based on the enterprises in developed countries as the research object, with the rapid development of emerging economies in the past ten years, in China as representative of the developing countries enterprises transnational investment rising, there are many new phenomenon in traditional theory of multinational enterprises difficult to explain. With multinational companies approach to international expansion of the diversification and complexity is more and more strong, academic research focus gathered in the system distance under the influence of transnational investment enterprises how to avoid and overcome the topic of outsiders disadvantage, and during the transition period of China’s economic development and progressive social reform is significantly different from the transformation of any country in the world. China has been following the reform process of trial and error, forming the structure of Chinese social system, it led to the Chinese and foreign legal system environment to show a difference in diversity of characteristics, these characteristics distinctively affected every aspect of Chinese enterprises transnational investment. Based on this characteristics of the structure of the social system, and using the strategy theory to explain enterprise transnational investment location selection, using the transfer of organizational behavior and legal interpretation to the strategy, using social network and institutional arbitrage theory to explain the operating performance of Chinese enterprises transnational investment theory framework, clearly display under the existing system arrangement, constructs the system of distance to impact of Chinese enterprises transnational investment behavior of the general clear pattern.In this paper, the third chapter to the sixth chapter discusses the above problems in turn, the main conclusions are as follows:On the location selection, when the distance of control system is greater, China’s enterprises seeking either strategic assets, or in order to grab a lot of cheap natural resources; While the presence of institutional system distance, making China is restricted by the host social beliefs, values, ethics, the national way of thinking, social customs, and other normative system, so increased the uncertainty of "foreign business cost", and reduced the investment demand;In the entry strategy, the existence of institutional distance makes Chinese enterprises is difficult to obtain the legitimacy of outsiders disadvantage, enterprises must adopt the strategy of local isomorphism, establish joint ventures with local partners, make Chinese enterprises showed less the characteristic of foreign, it is helpful to weaken the external disadvantage;On the operating performance, when the distance of the control system is greater, on the one hand Chinese enterprises obtain the learning effect and synergistic effect, increase the invisible knowledge reserves by strategic assets of institutional embeddedness. On the other hand,Chinese enterprise could make rent-seeking in the enterprise development operation to obtain a large number of needed resources for economic development with low-cost.