The Effect Of Experience Learning On The Subsidary Performance Of Chinese Multinational Firms

As reform and opening up30years, our multinational investment although hasachieved some achievements, but due to the lack of experience guidance, it still existslarge blindness. Therefore, this paper attempts to research the effects in an eye ofexperience on the performance of Chinese firms’ multinational investment. To do this,we can understand the relationship between experience learning and the performanceof multinational investment. So that it can guide Chinese firms better take the "goglobal" strategy, reduce the enterprise multinational investment failure rate andimprove the survival performance of the overseas subsidiary companies.This paper combines the theoretical analysis methods and empirical analysismethods to discuss the relationship between the experience learning and Chinesefirms’ multinational investment performance. Firstly, this paper summarizes andanalyzes the developing situation of China’s foreign direct investment, then itconceives the research framework by combining with research purpose and researchmeaning. Secondly, this paper reviews the learning theory, experience learning theory,the relationship between experience learning and the performance and so on. Itprovides the theory reference for our research. Then this paper analyses the specialChinese national conditions, which is our transnational investment is still in theprimary stage. So the ability of our firms to grasp and understand their ownexperience is not enough. And considering the knowledge of psychology, sociologyand so on, we put forward the theory model——"someone who is in situation will bepuzzled, someone who is not in the situation will be clear". And according to thismodel, we developed the hypothesis between the experience learning and our countrymultinational investment performance. That is own success experience and ownfailure experience have no significant correlation to the performance Chinese firms’multinational investment, but other firms’ successful experience and other firms’failure experience have significantly positive correlation relationship to theperformance of Chinese firms’ multinational investment. Next, through empiricalstudy, we test our theory model and its corresponding hypothesis. Finally, accordingto the conclusion we put forward the policy suggestions to provide help for ourcountry’s firms better "go out". At the same time, this paper also points out thelimitations of this study and the prospects for the future research.The research results showed that own experience (own success experience, ownfailure experience) has no significant effect on multinational investment performance, it means in the process of our country’s multinational investment, the increase of ownexperience will not bring the improvement of organizational performance. In contrast,other firms’ experience (other firms’ successful experience, other firms’ failureexperience)has significantly positive effect on the multinational investmentperformance, it means in the process of our country’s multinational investment,organizational performance will significantly increase with other firma’ experienceincreased. These are consistent with our hypothesis. These research results show that,in the special national circumstances, which is our country’s multinational investmentis still at the primary stage, the theory model——"someone who is in situation will bepuzzled, someone who is not in the situation will be clear" that this paper constructedcan be used to explain the effect of the experience learning on the investmentperformance. Also, it is the important theoretical innovation in this paper.