The Influencing Mechanism Of Guanxi On The Internationalization Degree Of Chinese Manufacturing Enterprises

As China’s economy continues to develop, more and more Chinese enterprises began their internationalization strategy. China is a big manufacturing country, however, the foreign direct investment (FDI) is slowing down in recent years, while the outward foreign direct investment (OFDI) of Chinese enterprises grows rapidly. Because of that, the export-oriented internationalization of Chinese enterprises has led to the attention of scholars. Through reading the literature, we found that past researches mainly focused on the internationalization of Chinese enterprises in motivation, location choice, and international performance, etc. Little literature has in depth discussed the factors promoting the internationalization of Chinese enterprises.The traditional Chinese culture has great influence on China’s business environment, which makes it more complicated. But how will the informal relationships (guanxi) impact on the internationalization of Chinese enterprises? Through what kind of mechanism is this effect passed? Does it also influenced by other factors? The purpose of this study is to solve the above problems, mining relations of enterprises’internationalization mechanisms.On the basis of literature reading and research in the field, this research had investigated335enterprises and112of those were effective. Using SPSS and Regression Model, this research conducted empirical analysis through questionnaire survey and got the following conclusions:Guanxi with governments and business partners of enterprises have a positive effect on the degree of internationalization. It’s also effected through the mediating variable of resource bridging capability and adaptive capability. Guanxi is the intangible asset invested by Chinese enterprises, to help them obtain the resources required for internationalization and make response to the international market uncertainty, which makes Chinese enterprises more confident for their internationalization activities. The market uncertainty regulates the effect of guanxi with governments and business partners to the dynamic capabilities. Also, international experiences regulates the capability to adapt to the degree of internationalization. This study also found that guanxi with business partners would regulate the effect of guanxi with governments to the resource bridging capability.