The Analysis On Entry Mode Choice Determinants Of Technology Sourcing OFDI In China

Since 1990s, the trend of economic globalization has continued to strengthen, in an irreversible way. The substantial development of economic globalization causes more intense competition among countries, as well as companies. As a result, more and more multinational companies developed global economic development strategy based on the global value chains theory, to achieve the optimal resources allocation within the scope of the worldwide. Meanwhile, Chinese economy entered a new stage of development, with enterprises as the unit of the rapid development of foreign direct investment.On the background of economic globalization and rapid development of information technology, the enterprise has to improve its competitiveness in order to achieve long-term development. However, the competitiveness of enterprise depends largely on the strength of its technology level and the theory of the technology sourcing foreign direct investment is proposed on this background. Different from the traditional theory of comparative advantage theory, technology sourcing foreign direct investment theory makes a research of the reverse foreign development from developing countries to developed countries, while the developing countries do not have the traditional comparative advantages. The purpose is to be close to the host country's technological resources and to access the advanced technology.On the background of economic globalization and industrial upgrading demand as well as on the basis of technology sourcing foreign direct investment theory, this article is try to study the factors that affecting the entry mode choices of Chinese enterprises in technology sourcing foreign direct investment. Technology Sourcing OFDI entry mode is generally divided into M & A mode and the greenfield start-up mode, while the latter is divided into wholly owned newly buildup and joint venture. How to make a choose among those entry modes of investment to lower risk and lower costs as well as achieve the largest technology spillover become urgent attention and focus problems. Based on the company level and by the method of theoretical analysis plus empirical study, this article tries to prove the significance of variables through empirical study. Furthermore, in the end, the article tries to provide some model-based suggestions and references for enterprises to go out for the technology sourcing OFDI.On the impetus of our going out strategy and on background of economic globalization and the international financial crisis, the study to the analysis on the factors that affecting the entry mode choices of Chinese enterprises in technology sourcing foreign direct investment is no doubt significant. Meanwhile it also has a reference value for the fonmulation of national policy and direction guidance.