Empirical Research On The Factors That Effect Enterprise’sForeign Direct Investment Entry Mode Choice

Since the "going out" strategy was proposed, especially the accession to the WTO, China’s foreign direct investment has achieved rapid development. Especially, foreign direct investment in the manufacturing industry has made a particularly significant development. In terms of the special nature of our political system, ideology, in the internationalization process, manufacturing will inevitably encounter various problems. For instance, Huawei in M & A trefoil systems are strongly opposed by the Committee on foreign investment in the USA; SAIC Motor merges Ssang Yong Motor Company, which is boycotted by SsangYong union. Therefore, in order to reduce the resistance in the process of internationalization, companies need choose reasonable entry mode of foreign direct investment.This paper firstly reviews the theoretical and empirical researches on foreign direct entry mode, and on the basis of relevant theories, it puts forward some relevant assumptions sequentially for the relationships between enterprise scale, research and development capability, international experience, institutional constraints, cultural distance and the entry mode of foreign direct investment. On the basis of relevant assumptions, the paper takes some enterprises from four industries, which are electronic; machinery, equipment and instrument; metal and nonmetal; pharmaceutical and biological products, as samples. By using excel2007 and spss17.0, it carries out descriptive statistics and regression analysis for the collected data through logistics mode. Finally the paper draws the following conclusions:The scale of the enterprise, R&D capabilities, international experience, institutional constraints, and cultural distance are the major factors which affect the enterprise to choose the entry mode of foreign direct investment, and have important influence on it. It finds that: the enterprise which has larger scale, greater cultural distance, the richer international experience are more incline to take the enterprise entry mode of transnational mergers and acquisitions; the more R&D investment and the more institutional constraints are, the enterprise are more inclined to adopt new investment entry mode. Finally, this paper makes some suggestions according to the findings.