The Strategic Decision Model Of Chinese Enterprises' International Market Entry

Reform and opening-up policy has raised the curtain of Chinese enterprises' international market venture while opening the gateway to welcome overseas investors. During the 30 years after 1978, economic construction of China has impressed the world. Chinese enterprises are strengthening their power and accumulating experience constantly in the market-oriented economy, too. With the arrival of the economic globalization tide, development of the emerging markets, deepening of the international division and progress of communication technology have promoted worldwide economy to merge greatly. Chinese enterprises which want to obtain greater development must participate in the international market competition actively and establish the competition advantage in order to obtain larger income. However, the international market environment is fast changing. Chinese enterprises face the challenge of numerous risks while seizing the opportunity, the 2008 financial crisis has brought a profound lesson to numerous Chinese enterprises. The process of internationalization is full of new opportunities and also various risks, Chinese companies should know well about the international market and their own strength when taking the first step of internationalization. They have to scan the risks and make a tradeoff between the risks and opportunities, and then make the right decisions.Under the realistic background that the opportunities and risks coexist, primary problems that Chinese enterprises' internationalization has to confront are:Which internal and external factors may influence enterprises to choose correct entry mode? How do these factors act on the choice of entry mode? What function is the policymaker's esthesia factor played? What kind of strategic choice can obtain better performance? Which challenges will enterprises face after entering? In order to answer these questions, this research constructs a Strategic Decision Model to analyze the decision-making process of Chinese enterprises' international market entry and influencing factors. Chapter one summarized the realistic background, theoretic contribution, practice meaning, research contents and technological route of the research; Chapter two utilizes documentary research to review relevant researches of entry mode, international risk classifying and measure, and strategic decision. Then it makes brief comments on the above-mentioned theories and proposes some aspects need deepening on the basis of theory review; Chapter three utilizes correlate inference and deductive approach to integrate objective environmental factors, subjective perception and entry mode choice to construct a three-stages entry mode Decision Model, and proposes hypotheses of the relation between research variables; Chapter four adopts depth interview, documentary analysis, and questionnaire survey. It confirms the measurement of the variables on the basis of exploratory interview and relevant researches, and develops the scale to collect the information of Chinese enterprises'entry mode decision after pretest, reliability and validity test; Chapter five utilizes multi-hierarchical regression to verify all the hypotheses. It has investigated the direct and indirect effect objective environmental factors place on subjective perception and subjective perception place on entry mode choice, and also it has examined the mediating effect of subjective perception;Chapter six utilizes discriminant analysis, independent-samples T Test, ANOVA and correlate analysis to examine whether the enterprises that makes adaptive entry mode decision obtains better performance according to subjective perception, and the critical risks of the enterprises perceive after entering the international market under specific entry mode; Chapter six utilizes discriminant analysis, independent-samples T Test, ANOVA and correlate analysis to examine whether the enterprises that makes adaptive entry mode decision obtains better performance according to subjective perception, and the critical risks of the enterprises perceive after entering the international market under specific entry mode; Chapter seven combs the conclusion of empirical studying and proposes managerial implications, then puts forward the limitation and future research direction on the basis of the summary of the research.The conclusion of this research includes three respects mainly:First, such objective environmental factors as resource-based, transaction-cost and institutional environment variables will influence decision-makers'perception of risk and opportunity. In brief, enterprises which control more resources may perceive lower risk and more opportunity, enterprises whose transaction assets have high specialty may perceive higher risk and fewer opportunity, and institutional factors moderate the relationship between resources,assets specialty and subjective perception; Second, subjective factors (perceived risk, perceived opportunity) influence the entry mode choice directly, and risk propensity plays double moderating effect as the decision-makers'psychological characteristics (While it influences the relationship between objective factors and subjective perception, subjective perception and entry mode choice); Third, the enterprises that makes adaptive entry mode decision according to subjective perception obtains better performance, and the enterprises perceive different critical risks after entering the international market under specific entry mode.Compared with existing studies, this research has carried on the new try in research of entry mode decision-making process. Its theoretic contribution lies in:First of all, this research synthesizes several theoretic perspectives to investigate the objective foundation of international market entry decision. It probes the interactive mechanism of these objective variables in order to remedy the defect of the individual theoretic perspective. Secondly, this research learns from the analysis framework in general strategic decision-making and consumer behaviour studies. It introduces perceived risk, perceived opportunity and risk propensity into the entry mode research and complements the theoretic perspective of entry mode study by analyzing entry mode decision from the decision-maker's subjective view. Thirdly, it integrate perceived environmental risk factor and China's background to the strategic decision-making research, and makes a preliminary attempt on introducing the environmental dynamics into of Chinese enterprises'international market entry research.