The Empirical Research Of Chinese Corporations’ ODI Activity From The View Of Market Orientation

In recent years, emerging economies’ overseas direct investment (ODI) activityhas grown rapidly. The Overseas Direct Investment means local companies directlyinvest into production or business in a foreign country, either by mergers andacquisition of another company, or by expanding operations of existing business inthat country, then export capital and gain profit. However, both domestic and foreignscholars mostly research on the concept of ODI, but the underlying logisticrelationship lacks. Nowadays, what the investors and the CEOs mostly concerns iswhich kind of companies tend to have overseas direct investment, as well as whichkind of market orientation strategy adopted when companies have overseas directinvestment.This paper established an integrated model, studying the relationship betweenmarket orientation and ODI, with the mediating effect of internationalizationorientation and localization orientation, as well as the moderating effect. According tothe cultural view of market orientation, the starting point of the study is customerorientation, competitor orientation and inter-functional coordination as the dimensionof market orientation.Through the empirical research on174Chinese corporations in Top7industries,this paper used several data processing methods, such as statistical description,hypothesis testing, Pearson correlation analysis, regression analysis, there found someresults: Lower customer-oriented company tends to have ODI, highercompetitor-oriented company tends to have ODI, internationalization orientation isthe mediator between competitor orientation and ODI, and inter-functional coordination has the moderating effect between competitor orientation andinternationalization orientation. This paper also put forward correspondingsuggestions based on above analysis.