Research On The Choice Of Investment Strategy Of Oil-gas Enterprise In China In Central Asia And Russia

Chinese oil industry has strong oversea dependence – importation is as high as 60%.In order to ensure the needs of domestic production and living,multinational investments have become a necessity for oil-gas enterprises.Oil-gas enterprises in China have already built five overseas strategic areas,of which Central Asia and Russia is the most important strategic area,especially relates to the process promotion of the "One Belt and One Road" policy.As Central Asia and Russia are traditionally under Russian influence in which the economic structure is singleness and the country is highly rely on energy industry,government control energy investment strictly,the investment policy is complex and changeable,appending various kinds of investment term and existing multitudinous related interested party.Under this kind of complex environment,Chinese oil-gas enterprises in the region must have a systematic investment strategy in order to gain the energy and expected profit.The investment strategy mainly include four aspects: identify possible available investment opportunities(Analysis of opportunity identification);clarify the possible impact on the investment of Chinese oil-gas enterprises since the various policy environment changes(Analysis of influencing factors);utilize their own advantages,deal with a variety of identified investment opportunities,and produce various alternative investment strategies(Analysis of Investment Strategy Selection);and ultimately achieve the predicted goals of corporate performance through the correct choice of the appropriate investment strategy(Analysis of business performance).Investment strategy choice in the entire investment decision-making system,in a critical position before and after,is the core of the investment decision-making system and the key link,directly related to the final performance of business performance.So,this paper chooses to study the investment strategy of Chinese oil-gas enterprises in Central Asia and Russia.In order to study of investment strategy choice,it starts with analysis of opportunity identification and analysis of influencing factors,extends the performance evaluation of business performance,and ultimately forms a systematic analysis of investment for Chinese oil-gas enterprises in Central Asia and Russia,and then provide a systematic investment reference for Chinese oil-gas enterprises in Central Asia and Russia.Based on the above logic,this paper first states the multinational investments strategy and the theory of energy cooperation,and analyzes the weak problem of the existing research on the construction of the strategic model of investment strategy and the empirical research,then begins the research from both theoretical and empirical aspects on the construction investment strategy selection model of Chinese oil-gas enterprises in Central Asia and Russia and its implementation effect and so on.In the aspect of theoretical analysis,on the basis of the theory of dynamic competitive advantage,this paper constructs a theoretical model of investment strategy including investment opportunity recognition mechanism,investment strategy selection mechanism,and investment risk control and solution,which is based on the analysis of the internal and external factors influencing the investment strategy of Chinese oil-gas enterprises in Central Asia and Russia.Further on this basis,this paper raises four specific types of investment strategy model: Upstream and Downstream Integration Investment Strategy(UDI),Competitive Advantage Differentiation Investment Strategy(CAD),Strategic Partner Collaborative Investment Strategy(SPC),Resource Country Market Share Investment Strategy(RCMS).In the aspect of empirical analysis,taking the chain of oil-gas enterprises as a sample,use structural equation model to verify the different investment strategy for oil-gas enterprises in the market performance of the specific impact,and then provide empirical support for assessing the effectiveness of investment strategies implemented by Chinese oil-gas enterprises in Central Asia and Russia.Finally,in view of the fact that typical cases are lacking in the existing research,the author uses his own experience of involving in the Yamal LNG project promoted by CNPC and uses this specific case to systematically to demonstrate the ideas and steps of each module of the investment strategy.The main contents are as follows:First,from the reality of the background of the protection of Chinese energy supply and the promotion of investment strategy implement of Chinese oil-gas enterprises in Central Asia and Russia,through the analysis of investment status and investment environment of Chinese oilgas enterprises in Central Asia and Russia,find out the problems in the investment of Chinese oil-gas enterprises in Central Asia and Russia.The study found that although the area of Central Asia and Russia is the traditional strategic investment area of Chinese oil-gas enterprises,the political environment is better,the economic complementarity is strong,however,due to the economic structure of Central Asia and Russia is single,strong dependence on oil and other energy,oil-gas enterprises are highly competitive,foreign investors have greater uncertainty in earnings.So select the choice of investment strategy of Chinese oil-gas enterprises in Central Asia and Russia as the study of the theme.Second,introduce the theory of strategic management,the theory of competitive advantage and the diamond model,and through the literature analysis,find out the deficiencies of existing research on the construction of theoretical Model of investment strategy choice and the empirical research.Third,based on the theory of dynamic competitive advantage,this paper carries out the analysis of investment opportunity identification and makes a systematic summary on the investment opportunities and the main influencing factors of investment strategy of Chinese oil-gas enterprises in Central Asia and Russia.On this basis,the paper puts forward the investment strategy selection model of Chinese oil-gas enterprises in Central Asia and Russia and demonstrates it in theory.Combining with the implementation of various types of strategies on the impact of business performance mechanism,the paper constructs a complete research framework,starting from the investment opportunities to identify and the influence of the key factors of investment strategy,to the specific type of investment strategy implementation,and then to how to influence the final business performance.Through such a transmission path,the formation mechanism of investment strategy selection of Chinese oil-gas enterprise is formed.Fourth,the paper uses the micro-questionnaire survey data to verify the main influencing factors of investment strategy choice of Chinese oil-gas enterprises in Center Asia and Russia and the effect of investment strategy on business performance.Through the structural equation,respectively,verify the role of the six elements,which affect the investment strategy selection,on the direction and size of investment strategy choice.The study found:1.Executives Competitive Advantage Expected Ability(EA)indirectly affects business performance through UDI and CAD.There is no significant relationship between EA and SPC and RCMS.From the path coefficient point of view,the affection of ECAEA on the CAD is greater than on the UDI.2.Shared Vision Capabilities(SVC)indirectly affect business performance through UDI,SPC,and RCMS.The relationship between SVC and CAD is not significant.From the path coefficient,SVC has the greatest influence on the RCMS,followed by the UDI,the smallest is SPC.3.Managing Stakeholder Competencies(MSC)and Gaining Stakeholder Motivation Ability(GSMA)indirectly influence business performance through SPC.Respectively,it’s not significant between MSC and GSMA with UDI,CAD and RCMS.From the path coefficient,when choosing an investment strategy,executives are more concerned about MSC than GSMA.Indicating that when choosing investment strategy,the executives are more concerned about stakeholders and seldom concerned about the incentives from stakeholders.4.Resource Country Industry Resource Availability(RCIRA)indirectly affects business performance through CAD and UDI.The relationship between RCIRA with SPC and RCMS is not significant.The path coefficient shows that Chinese oil-gas enterprises will choose CAD when RCIRA is poor and choose UDI when high.5.Stakeholder Pressure(SP)indirectly affects business performance through UDI,CAD,SPC and RCMS.From the path coefficient,SP has the greatest influence on CAD and has the least influence on RCMS.It shows that Chinese oil-gas enterprises,when facing the pressure of the stakeholders,consider to reduce the pressure from the internal business and to take CAD as soon as possible to solve the pressure of stakeholders.Since RCMS is affected by external factors,enterprises have difficulties to relieve stress in a short period of time.6.Chinese oil-gas enterprises can choose to implement the four different types of investment strategies and they all have a significant positive correlation to business performance.It fully reflects significantly positive correlation for Chinese oil-gas enterprises to carry out different investment strategy choice to enhance performance.From the path coefficient,it can be seen that SPC has the greatest impact on business performance.UDI has the least effect on the positive business performance.From the path coefficient,it fully reflects to implement the priorities of the various types of investment strategies for Chinese oil-gas enterprises in Central Asia and Russia.SPC is most likely to bring business performance improvement for the enterprise.Indicating that strategic partners are Chinese oil-gas enterprises in Central Asia and Russia to obtain the main source of performance.Fifth,the use of typical cases,which is 7 years case review from start to implementation of Russian Arctic Yamal LNG project,further confirms the rationality and correctness of the Choice Theory of Investment Strategy,which is designed by this paper.The theory has a guiding significance for the production practice.Through the theoretical research and empirical test,as well as the past successful case verification,in the choice of investment strategies in Central Asia and Russia,Chinese oil-gas enterprises could directly use the following main conclusions:First,if executives of Chinese oil-gas enterprises believe that it is expected that the investment strategy can bring competitive advantage,UDI and CAD could be chosen and needn’t be considered SPC and RCMS.And to make a choice between UDI and CAD,the latter should be focused on.Second,if Chinese oil-gas enterprises have the ability to build Shared Vision,UDI,SPC and RCMS could be chosen.These strategies can effectively enhance the competitiveness of enterprises.But CAD is not an option.When choosing an investment strategy,RCMS should be considered firstly,followed by UDI,and finally SPC.Third,if Chinese oil-gas enterprises have the ability to manage the stakeholders,give priority to SPC.And UDI,CAD and RCMS are not taken into account.Fourth,if Chinese oil-gas enterprises could obtain the incentive of stakeholders in the implementation of investment strategies,give priority to SPC.And UDI,CAD and RCMS are not taken into account.Fifth,if RCIRA is poor,Chinese oil-gas enterprises should give priority to CAD.And UDI,SPC and RCMS may not be considered.When RCIRA are high,the priority of UDI,and give up CAD,SPC and RCMS.Sixth,if the stakeholders of Chinese oil-gas enterprises are under great pressure,enterprises could choose to implement UDI,CAD,SPC and RCMS,and give priority to the CAD,followed by SPC and UDI,and ultimately RCMS.Seventh,Chinese oil-gas enterprises could choose UDI,CAD,SPC and RCMS,the four strategies to enhance business performance.The selection order is followed by SPC,RCMS,CAD and UDI.Based on the above research contents,the innovations of this research are as follows:1.Constructs a complete theoretical system of investment strategy selection model,which includes four aspects,the investment mechanism identification analysis,influencing factor analysis,the specific type of investment strategy choice and business performance.And put forward four specific feasible types of investment Strategy choice,namely: Upstream and Downstream Integration Investment Strategy,Competitive Advantage Differentiation Investment Strategy,Strategic Partner Collaborative Investment Strategy,Resource Country Market Share Investment Strategy,which constitutes a strategic choice of investment strategy,effectively make up the lack of existing theoretical research on the investment strategy selection of Chinese oil-gas enterprises in Central Asia and Russia.2.Through the questionnaire survey,collecting data,and using the structural equation and other more innovative methods,the investment strategy selection model is systematically tested.The results show that the model of investment strategy is a good way to verify the influence of each factor on the choice of investment strategy,and to specify the direction of investment strategy.The results also show that the choices of investment strategies have a positive effect on business performance,which is an effective complement to the lack of systematic testing of existing empirical research.3.Design investment strategy impact factor scale,investment strategy selection type scale and business performance scale for executives of Chinese oil-gas enterprises in the Central Asia and Russia,which provide an empirical basis for the further study in the investment strategy choice of Chinese oil-gas enterprises in Central Asia and Russia.And verify the investment strategy is an important factor in strategic investment of Chinese oil-gas enterprises in Central Asia and Russia.4.The case study of the paper is an enrichment and extension of existing research.The author spent seven years to participate in the implementation of the Russian Arctic Yamal LNG project.From the start of the project to the specific implementation,the author led the implementation of the project as a decision-making participant.This paper systematically validates the work that should be done at all stages of the investment strategy in Central Asia.This paper examines the rationality and practicability of the proposed investment strategy selection system comprehensively and systematically.At the same time,as a successful example of the implementation of the "One Belt and One Road" policy,the case could be as our government decision-making reference to deal with the political and economic issues in Central Asia and Russia.It has a demonstration effect on the follow-up strategic investment,but also for the future theory research of investment strategy to provide empirical reference.