Environmental Uncertainty And International Market Entry Mode Of Chinese Manufacturing Enterprises

The process of enterprise internationalization is full of new opportunities as well as various uncertainties.When entering the international market,it has become an important issue for Chinese manufacturing enterprises to comprehensively scan the external environment and their own strength to be faced,weigh risks and opportunities,and choose an appropriate international market entry mode.Starting from the phenomenon of Chinese manufacturing enterprises’ foreign direct investment,this paper takes the motivation and entry mode of enterprises’ foreign direct investment as the core issue,analyzes the influence mechanism of enterprises’ foreign direct investment decision-making in the Chinese context.Based on the perspective of international and domestic environmental uncertainty,it reveals the choice and rules of enterprises’ entry mode under the uncertain environment,and the coping strategies of Chinese manufacturing enterprises based on their own resources and market choice when facing the uncertain environment.This paper analyzes the motivation of Chinese manufacturing enterprises to enter the international market and the correlation between motivation and external environmental factors.The environmental assessment scale of the host country for enterprises’ international market entry motivation,enterprises’ international market entry motivation and the environmental assessment scale of the home country for enterprises’ international market entry motivation were constructed.Taking“market-seeking”“resources-seeking”“strategic-assets-seeking” and three kinds of single investment motives as characteristic variable indicators,cluster analysis is conducted on the samples,and three types of mixed international market entry motives of Chinese manufacturing enterprises were studied and analyzed.The paper further observes the host country and home country environmental factors that Chinese manufacturing enterprises pay more attention to under the mixed motivation.At the same time,the paper constructs an analytical framework for the choice of international market entry modes of Chinese manufacturing enterprises.Based on the international market choice of Chinese manufacturing enterprises’ listed companies from 2010 to 2020,the paper uses data from the macroeconomic level,industry level and micro enterprise level,and uses multiple logistic regression empirical methods to carry out the analysis.In the analysis of the uncertainty of international trade environment,based on the resource-based theory and institutional theory,two dimensions of institutional environment at the national level and industrial environment at the market level are selected.In the analysis of the uncertainty of the domestic market environment,based on the resource-based theory,the institutional theory and the compromise theory,from the two dimensions of the regional policy environment at the national level and the regional industry environment at the market level,this paper studies and analyzes the rules of China’s manufacturing enterprises’ international market entry mode selection,and analyzes the regulatory relationship between the enterprise’s technological resources and political relations on these two uncertain environments and entry mode selection.Finally,using the multi case study method,this paper selects three manufacturing enterprises and five typical cases to verify and analyze the relationship between Chinese manufacturing enterprises’ international market entry motivation,environmental uncertainty and international market entry mode,and the regulation of enterprises’ resource capabilities to this relationship.The research findings are as follows:(1)In the context of China,there are three motivations for China’s manufacturing industry to enter the international market: market seeking,resource seeking and strategic asset seeking,and these three motivations all attach importance to the economic,market and institutional environmental factors of the host and home countries to varying degrees.At the same time,most Chinese manufacturing enterprises have mixed motives for entering the international market.The strength and weakness of the three mixed investment motives in the three single investment motives are significantly different.The institutional and market environmental factors in the environmental factors of the host country and home country will have a greater impact on the trend of mixed motives;(2)Whether they enter developed or developing countries,when the host country’s industry environment is less uncertain,regardless of the trade institutional environment,Chinese manufacturing enterprises are more inclined to choose the market entry mode of cooperation,and the probability of enterprises choosing cooperation increases with the improvement of the host country’s institutional environment Once the uncertainty of the industry environment intensifies,even if the host country’s institutional environment is relatively stable,enterprises tend to choose a more conservative export mode.(3)When the domestic(home country)regional industry environment and the regional institutional environment are both less uncertain,most enterprises will choose the new plant mode;When the regional industry environment and the regional institutional environment are both highly uncertain,most enterprises will choose the export mode;When the regional industry environment or the regional institutional environment is highly uncertain,most enterprises are more inclined to choose the mode of cooperation to enter the international market.(4)The technological capabilities and political connections of enterprises will positively regulate the relationship between specific environmental types and entry modes.Among them,technological capability positively regulates the relationship between the uncertainty of the host country’s trade environment and the choice of the enterprise’s international market entry mode.That is,the stronger the technological capabilities of Chinese manufacturing enterprises is,the more they tend to choose the mode with higher risk,control degree and resource input degree.When the host country has higher institutional or industry environment uncertainty,enterprises with stronger technological capabilities are more inclined to choose the new plant mode.When the degree of uncertainty in the overall trading environment is low,enterprises with stronger technological capabilities are more inclined to choose the mode of cooperation;only when the domestic regional environment or competitive technological environment is highly uncertain,the political connections positively regulates the relationship between the domestic market environment and the entry mode.The research results of this paper have guiding significance for Chinese manufacturing enterprises to choose the international market entry mode.