The Influence Of Cultural Distance On The Internationalization Speed Of Enterprises

Nowadays,more and more enterprises in China are going abroad to set up subsidiaries or acquire local enterprises in different countries.Multinational enterprises have gradually become an important force to promote the growth and prosperity of the world economy.In emerging economies like China,the speed of internationalization of enterprises is very different,and the process of internationalization of enterprises will not be smooth sailing.Among them,culture is the most important factor.Nowadays,when enterprises choose internationalization strategy,the differences between cultures of different countries have gradually become an important reference standard for enterprises.In addition,in the face of the impact of cultural distance from the host country,enterprises often need to consider the impact of local rules and regulations on enterprise operation,so as to actively respond through the adjustment and innovation of internal systems,and the speed up the pace of internationalization.The relationship among cultural distance,internationalization speed and enterprise institutional capacity becomes the main issue of this paper.This paper reviews the relevant literature of cultural distance,internationalization speed and enterprise institutional capacity,summarizes the relevant theoretical basis,puts forward the hypothesis,the influence of cultural distance on enterprise internationalization speed,and the role of institutional capacity in the relationship between them,and constructs a theoretical model.Then this paper select Chinese listed companies as the research object,collect relevant data through CSMAR database,enterprise official website and China Statistical Yearbook,empirically test the impact of cultural distance on the speed of internationalization,and explore the regulatory role of corporate institutional capacity.In this paper,Stata is used to analyze the data,so as to verify the hypothesis.The results show that cultural distance has a negative impact on the speed of internationalization,that is,the larger the cultural distance is,the slower the speed of internationalization is.Institutional capacity plays a partial moderating role in the relationship between cultural distance and internationalization speed.Finally,this paper provides reference and suggestions for the internationalization strategy of multinational enterprises.