Effects Of Psychic Distance On Overseas Market Entry Mode Of Engineering Companies From The Perspective Of Inertia

With the acceleration of the global economic integration process,more and more engineering companies have gone abroad to seek overseas development.Therefore,it is necessary to determine scientific overseas market strategic decisions.In the strategic decision to enter overseas markets,the choice of entry mode has always been the research focus of internationalization theory and a key decision for enterprises to enter overseas markets.The mainstream view in the field of international business believes that psychic distance has an important impact on the entry mode of overseas market,and inertia will also have a certain impact on the strategic decision-making of enterprises.However,the specific influencing mechanism varies with different research methods and objects.Therefore,it is particularly important to study the influence mechanism of entry mode.Based on the Uppsala model modified by inertia,this thesis adopts the empirical research method to explore the interaction between psychic distance and inertia on the overseas market entry mode of international engineering enterprises.The implementation process of this thesis is as follows: first,based on the practical problems and a review of the literature,this thesis sets up the psychic distance,inertia and entry mode dimension.Then this thesis establishes the psychic distance,inertia and international engineering companies of foreign market entry mode theory research framework model,puts forward 3 main effect hypothesis,9 of the adjusting effect hypothesis.Second,the measurement of relevant constructs in the existing scale is improved through interviews,surveys and pre-experiments to make it more consistent with the engineering practice in China,so as to determine the survey questionnaire formally used for data collection.Third,this thesis adopts the method of improbability sampling and snowballing to determine and establish the survey objects to ensure the effectiveness of the questionnaire.Meanwhile,it also distributes the questionnaire and collects the original data in an efficient way of online survey.Finally,the data of 139 valid questionnaires collected is analyzed by using SPSS 19.0 multivariate adjusted regression analysis technology to verify the hypothesis.It finds that geographic distance and cultural distance have no significant influence on the overseas market entry mode of international engineering enterprises,but the overseas market entry mode of international engineering enterprises gradually tends to the way of low market commitment with the increase of institutional distance.Cognitive inertia will strengthen the influence of institutional distance on entry mode,while cultural inertia will weaken it.This study focuses on the internationalization of engineering enterprises in China,by introducing the authoritative Uppsala model in the field of international business,the latest achievements in the field of international business are theoretically introduced into the field of engineering,and the application of relevant theories is expanded from the perspective of empirical research.At the same time,it also provides scientific guidance for engineering enterprises to implement the internationalization strategy,which is beneficial for enterprises to make rational use of their own resources and enhance their international competitiveness.