Research Based On Institutional Perspective Of The International Diversity-Performance Relationship

With the deepening of economic globalization, internationalization has become an important strategic choice for Chinese enterprises to pursuit international competitive advantages. But in the process of internationalization, because of the significant differences of institutional terms between China and Europe,the United States et al countries, which have inevitable negative impacts on the Chinese enterprises’ overseas operating performance.Therefore, the study of the problems in the process of internationalization and the factors that affect multinationals’ operating performance from the institutional perspective will have great theoretical and practical significance.In this paper,we studied the impact of institutional distance on the international diversity-performance relationship. We first summarize the results of previous research,and we make an analysis of the current status of the internationalization of Chinese multinationals and the problems that existed. Then we discussed the international diversity-performance relationship for multinational enterprises and later show the moderation effect of institutional distance. Based on the sample of82Chinese multinationals, we found an inverted U-shaped curve. And we also get the result that the regulative institutional distance has a negative moderating effect on the international diversity-performance relationship, while the negative effect of normative institutional distance is not significant. Finally, based on these conclusions, we proposed some recommendations to the enterprises on implementation of internationalization strategies and also give advices to the government, which can promote Chinese multinationals can go further in the process of internationalization.